IMF: World faces another credit crunch

In its Washington Spring summit, the organisation said it expects the world's biggest banks to slash their size by $2.6trn (£1.6trn) by the end of next year - representing a 7% squeeze on the size of their combined balance sheets, reports Sky News. If such a scenario plays out, businesses throughout Britain and Europe are likely to face further difficulty borrowing from banks. The IMF said it expects a quarter of this balance-sheet crunch to come in the form of lower bank lending, with the rest involving selling off assets and securities. It added the squeeze was already well under...