Banks are bracing themselves for a rise in small company insolvencies and restructurings over the next year, reversing this year’s downward trend. Some of the largest UK corporate lenders, including Barclays, Lloyds Banking Group and Royal Bank of Scotland, see restructurings and insolvencies among smaller companies increasing or staying at current high levels, and are boosting their resources to meet the need. That comes in spite of public insolvency numbers falling in the third quarter. According to Freshfields Bruckhaus Deringer, the data suggest that failures among larger businesses fell by 13 per cent year-on-year with smaller business insolvencies down 14 per cent, continuing the downward trend of the first half of the year.