Supply
- Contrary to their expectations in the Q3 survey, lenders reported that the availability of secured credit to households had been reduced materially over the three months to mid-December. They expected a further reduction in secured credit availability over the next three months.
- Lenders reported that household unsecured credit availability had been reduced a little over the past three months. They expected a further slight reduction in unsecured credit availability over the next three months.
- Corporate credit availability was reported to have been reduced significantly over the past three months, in line with lenders’ expectations in the Q3 survey. A further reduction in the availability of credit was expected over the next three months.
Demand
- Overall demand for secured lending was reported to have increased over the past three months, though by less than had been expected in Q3. Lenders expected demand for secured credit to fall over the next three months.
- Lenders reported that demand for credit by private non-financial corporations had fallen over the past three months. A significant increase in demand for credit by financial corporations was reported.
Terms and conditions
- Spreads on secured lending to households were reported to have increased significantly over the past three months. Further increases were expected over the next three months.
- Lenders reported that spreads on corporate lending had increased over the past three months in line with their expectations in Q3. Further increases were expected over the next three months.
Default rates
- Default rates on secured lending to households were reported to be broadly unchanged over the past three months, though losses given default had risen. Lenders expected default rates, and losses given default, on secured lending to rise over the next three months.
- Lenders reported that default rates on medium-sized corporate loans had risen over the past three months, as expected in the Q3 survey. Default rates on large corporate loans were unchanged.