The Bank of England said on Tuesday that the surge in consumer borrowing meant that banks were at risk of losing money and warned that some banks could loosen credit standards in order to compete for family lending.

Consumer spending at the end of last year increased by more than 10%, the fastest growth rate in 10 years, to help drive the economy strong growth, despite the British referendum in June decided to retire Europe. The savings rate has fallen to its lowest level in more than 50 years.

The Bank of England said last week that it was paying close attention to consumer borrowing and provided more details on Tuesday.

"The loosening of the credit supply situation seems to contribute to the growth of consumer credit, which is intense in some areas of the market," the Bank of England said in a summary of the latest meeting of the Financial Policy Committee.

The UK Financial Market Behavior Regulatory Authority (FCA) on Monday suggested that credit card companies should freeze borrowings on part of the interest and expenses paid over repaid loans. In the UK, 3.3 million people pay interest and expenses over their repaid loans.

The Bank of England is also investigating the risks associated with borrowing boom and may take action before the end of the year.