Credit Conditions Survey - 2014 Q1

This quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions.
Published on 03 April 2014


  • The availability of secured credit to households was reported to have increased slightly in the three months to early March 2014, and lenders expected an increase in availability over the next three months.
  • Lenders reported that the availability of unsecured credit to households increased slightly in 2014 Q1, with a slight further increase anticipated in Q2.
  • The overall availability of credit to the corporate sector increased in 2014 Q1 according to lenders, this was the sixth consecutive quarter that lenders reported an increase in availability. A further expansion in availability was expected in Q2.


  • Demand for secured lending for house purchase was reported to have increased in the first quarter of 2014. Lenders expected demand to increase significantly in Q2.
  • Lenders reported that demand for credit card lending fell significantly in 2014 Q1, and expected little change in Q2. In contrast, demand for other unsecured lending products, such as personal loans, increased in Q1, with significant increases expected in Q2.
  • Demand for lending from small businesses was reported to have increased in 2014 Q1, with a further increase expected in Q2. Demand for lending from medium-sized companies and large corporates was reported to have picked up significantly in Q1, and further marked increases were expected in Q2.

Loan pricing

  • Lenders reported that overall spreads on secured lending to households — relative to Bank Rate or the appropriate swap rate — narrowed slightly in 2014 Q1. And spreads were expected to narrow slightly further in Q2.
  • Spreads on credit card lending were reported to have remained unchanged in Q1. In contrast, spreads on other unsecured lending products fell significantly, and a further significant fall was anticipated in Q2.
  • Spreads on lending to small businesses remained unchanged in 2014 Q1, while spreads for medium-sized companies fell and for large corporates fell significantly. These trends were expected to continue over the next three months.


  • Lenders reported that both default rates and losses given default on secured loans to households fell significantly in 2014 Q1. They were expected to fall further in Q2.
  • Default rates on unsecured lending fell significantly in Q1 for both credit card loans and other unsecured loans. Losses given default fell for credit card lending and were unchanged for other unsecured loans.
  • Default rates on lending to small businesses increased slightly in 2014 Q1 but were reported to have fallen for medium-sized companies and large corporates. Losses given default remained unchanged for small and medium-sized companies but fell for large corporates.

PDFCredit Conditions Survey - 2014 Q1


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