British banks are in talks to set up a joint debt recovery vehicle in anticipation of having to recover tens of billions of pounds from borrowers unable to pay back coronavirus loans, Sky News reported Sept. 18.

UK Finance, which represents banks, has commissioned a feasibility study for a "shared recoveries utility" that would aim to create some distance between individual banks and the pursuit of repayments of loans provided under the Bounce Back Loans scheme. The first repayments under the government-backed coronavirus loan scheme, which was aimed at smaller companies, are due in 2021.

Under the Bounce Back Loans scheme companies can borrow up to £50,000 interest free. The loans are 100% guaranteed by the government, but sit on individual lenders' balance sheets so the banks are responsible for collecting the money when it becomes due.

The most recent public figures show that 1.17 million loans have been granted, with a total value of £35.47 billion. Talks were at an early stage, Sky News reported.