Thursday, 2 April 2009

The BoE publishes its credit conditions survey

The Bank of England has just published its credit conditions survey covering the first quarter of this year. Here is the executive summary:

Supply

• Lenders reported that they had reduced the availability of secured credit to households in the three months to mid-March 2009. A small net balance of lenders was expecting an increase in overall credit availability over the next three months.

• Unsecured credit availability to households and small businesses was reported to have been reduced by less than expected.

• Corporate credit availability had increased slightly over the past three months, contrary to the small fall expected in the 2008 Q4 survey. A further increase in corporate credit availability was anticipated over the next three months.

Demand

• Demand for secured lending for house purchase and for remortgaging was reported to have declined over the past three months.

• Demand for credit by private non-financial corporations had fallen over the past three months. Reduced

Terms and conditions

• Overall, spreads on secured lending to households were reported to have widened over the past three months, significantly more than expected. Non-price terms on secured lending were generally reported to have tightened, with further tightening expected.

• Lenders reported a further widening in spreads on corporate lending. They expected spreads to increase further.

Defaults

• Default rates, and losses on secured and unsecured lending to households and lending to private non-financial corporations were reported to have risen over the past three months.

2 comments:

Anonymous said...

Some surprising observations. Looks like credit growth is back on the menu.

look said...
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