Credit Conditions Survey - 2019 Q4

This quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions.
Published on 16 January 2020

Overview

As part of its mission to maintain monetary stability and financial stability, the Bank needs to understand trends and developments in credit conditions. This quarterly survey of bank and building society lenders is an input to this work. Lenders are asked about the past three months and the coming three months. The survey covers secured and unsecured lending to households; and lending to non-financial corporations, small businesses, and to non-bank financial firms.

This report presents the results of the 2019 Q4 survey. It was conducted between 25 November and 20 December 2019. Guidance on interpreting the survey and copies of the questionnaires are available at the end of this page.

Additional background information on the survey can be found in the 2007 Q3 Quarterly Bulletin article: ‘The Bank of England Credit Conditions Survey’.

The 2020 Q1 Credit Conditions Survey will be published on 16 April 2020.

Supply

  • Lenders reported that the availability of secured credit to households increased in the three months to end-November 2019 (Q4). This was stated to have been driven by market share objectives. The availability of secured credit was expected to decrease over the next three months to end-February 2020 (Q1).
  • The availability of unsecured credit to households was reported to have decreased slightly in Q4 and was expected to remain unchanged in Q1 (Chart 1). Credit scoring criteria for total unsecured credit applications were reported to have tightened in Q4, however the proportion of total applications approved was unchanged and were expected to remain unchanged in Q1.
  • The overall availability of credit to the corporate sector was reported to have decreased slightly in Q4 (Chart 2), with availability for both medium and large businesses reported to have decreased but remaining unchanged for small businesses. The overall availability of credit to the corporate sector was expected to decrease slightly in Q1.

Chart 1 Household unsecured credit availability (a)(b)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The blue bars show the responses over the previous three months. The red diamonds show the expectations over the next three months. Expectations balances have been moved forward one quarter so that they can be compared with the actual outturns in the following quarter.
(b) Question: ‘How has the availability of unsecured credit provided to households changed?’.
(c) A positive balance indicates that more unsecured credit is available.

Chart 2 Corporate credit availability (a)(b)

(a) See footnote (a) to Chart 1.
(b) Question: ‘How has the availability of credit provided to the corporate sector overall changed?’.
(c) A positive balance indicates an increase in credit availability.

Demand

  • Lenders reported that demand for secured lending for house purchase decreased in Q4, and was expected to decrease in Q1. Demand for secured lending for remortgaging increased in Q4, but was expected to decrease in Q1 (Chart 3).
  • Overall demand for unsecured lending decreased in Q4; this was driven by a reported decrease in demand for both credit card and other unsecured lending. Lenders expected the demand for credit card lending to increase in Q1; while demand for other unsecured lending was expected to remain unchanged (Chart 4).
  • Lenders reported a decrease in demand for corporate lending from businesses of all sizes in Q4 (Chart 5). Lenders expected demand for corporate lending in Q1 to increase slightly for small businesses and to decrease for medium and large businesses.

Chart 3 Demand for secured lending for house purchases and remortgaging (a)(b)

(a) See footnote (a) to Chart 1.
(b) Question: ‘How has demand for secured lending for house purchase/remortgaging from households changed?’.
(c) A positive balance indicates an increase in demand.

Chart 4 Demand for unsecured lending by loan type (a)(b)

(a) See footnote (a) to Chart 1.
(b) Question: ‘How has demand for credit card/other unsecured lending from households changed?’.
(c) A positive balance indicates an increase in demand.

Chart 5 Corporate demand for lending by firm size (a)(b)

(a) See footnote (a) to Chart 1.
(b) Question: ‘How has overall demand for lending from small businesses, medium PNFCs and large PNFCs changed?’.
(c) A positive balance indicates an increase in the default rate.

Loan pricing

  • Overall spreads on secured lending to households – relative to Bank Rate or the appropriate swap rate – were reported to have tightened slightly in Q4, and were expected to tighten in Q1.
  • Lenders reported that overall unsecured lending spreads were unchanged in Q4, and were expected to remain unchanged in Q1. The length of interest free periods for balance transfers and new purchases on new credit card lending both decreased in Q4.
  • Spreads on corporate lending to small firms were reported to have tightened slightly in Q4, but had widened for medium businesses and widened slightly for large businesses. Spreads on lending to large businesses were expected to widen slightly over the next three months, while for small and medium firms they were expected to remain unchanged.

Defaults

  • The net percentage balance for changes in default rates on secured loans to households decreased in Q4, and is expected to decrease further in Q1. The net percentage balance for losses given default on secured loans was unchanged in Q4, and was expected to remain unchanged in Q1.
  • The net percentage balance for changes in default rates for total unsecured lending was reported to have remained unchanged in Q4, however the default rate on other unsecured was reported to have increased (Chart 6). Lenders expected default rates for total unsecured lending to increase slightly in Q1, with credit card defaults expected to increase slightly but defaults on other unsecured lending expected to decrease slightly.
  • The net percentage balance for changes in default rates on loans to corporates increased for small businesses, increased slightly for large businesses and remained unchanged for medium-sized firms in Q4. The balances for defaults were expected to increase for small and medium-sized businesses in Q1, whilst increasing slightly for large firms. The net percentage balance for losses given default increased for small businesses but was unchanged for medium and large businesses in Q4.

Chart 6 Default rates on unsecured lending to households (a)(b)

(a) See footnote (a) to Chart 1.
(b) Question: ‘How has the default rate on credit card/other unsecured loans to households changed?’.
(c) A positive balance indicates an increase in the default rate.

How to interpret this survey

This report presents the results of the 2019 Q4 survey. It was conducted between 25 November and 20 December 2019. The results are based on lenders’ own responses to the survey. They do not necessarily reflect the Bank’s views on credit conditions. To calculate aggregate results, each lender is assigned a score based on their response. Lenders who report that credit conditions have changed ‘a lot’ are assigned twice the score of those who report that conditions have changed ‘a little’. These scores are then weighted by lenders’ market shares. The results are analysed by calculating ‘net percentage balances’. The net percentage balances are scaled to lie between ±100.

In this report, changes in balances are described as an ‘increase’ if greater than 10 in absolute terms, as ‘slight’ if between 5 and 10 and as ‘unchanged’ if less than 5.

Minor methodology improvements were introduced in 2019 Q4.

*Update 03/02/2020: The 2019 Q4 data points for the following three questions in the Unsecured CCS were inverted in the original publication, these data have now been corrected:

How have credit card limits changed?
How has the minimum proportion of credit card balances to be paid changed?
How have maximum maturities on loans changed?

Annexes

  • To calculate aggregate results, each lender is assigned a score based on their response. Lenders who report that credit conditions have changed ‘a lot’ are assigned twice the score of those who report that conditions have changed ‘a little’. These scores are then weighted by lenders’ market shares. The results are analysed by calculating ‘net percentage balances’ – the difference between the weighted balance of lenders reporting that, for example, demand was higher/lower or terms and conditions were tighter/looser. The net percentage balances are scaled to lie between ±100. This annex reports the net percentage balance of respondents for each question in the secured lending questionnaire.

    Positive balances indicate that lenders, on balance, reported/expected demand/credit availability/defaults to be higher than over the previous/current three-month period, or that the terms and conditions on which credit was provided became cheaper or looser respectively.

    Where the survey balances are discussed, descriptions of an ‘increase’ refer to a net percentage balance greater than 10 in absolute terms, and a ‘slight’ change refers to a net percentage balance of between 5 and 10 in absolute terms. Survey balances between 0 and 5 in absolute terms are described as unchanged. (The 2019 Q2 and earlier reports also described changes greater than 20 in absolute terms as ‘significant’).

    The first Credit Conditions Survey was conducted in 2007 Q2 and additional questions have been included since 2007 Q4. A full set of results is available in Excel file at the end of this page.

    Net percentage balances (a)

    2018

    2019

    Q3

    Q4

    Q1

    Q2

    Q3

    Q4

    How has the availability of secured credit provided to households changed?

    Past three months

    -10.8

    -12.1

    6.5

    -5.9

    -1.0

    15.2

    Next three months

    -14.8

    8.4

    -2.3

    11.5

    7.9

    -11.2

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    0.7

    -12.7

    -2.1

    -3.4

    -6.0

    -3.2

    Next three months

    -7.9

    -7.7

    -6.6

    -3.9

    -20.3

    -11.2

    market share objectives

    Past three months

    10.4

    6.2

    4.4

    0.3

    0.7

    24.4

    Next three months

    13.1

    14.7

    10.7

    4.2

    10.9

    -13.2

    changing appetite for risk

    Past three months

    -5.0

    -4.7

    12.7

    -1.7

    -3.5

    -8.7

    Next three months

    -9.8

    14.7

    1.2

    7.1

    -11.2

    0.0

    tight wholesale funding conditions

    Past three months

    -0.7

    -0.8

    -3.1

    -2.2

    0.0

    1.2

    Next three months

    -2.9

    -2.1

    -9.3

    -6.3

    -2.1

    0.0

    expectations for house prices

    Past three months

    -5.8

    -5.6

    -3.3

    -5.5

    -2.8

    4.7

    Next three months

    0.0

    -1.8

    -9.7

    -3.3

    -7.4

    -1.0

    How has the availability of household secured credit to the following types of borrower changed?

    Borrowers with low loan to value ratios (75% or less)

    Past three months

    0.0

    1.1

    1.8

    12.7

    3.7

    7.0

    Next three months

    11.9

    14.9

    11.9

    6.0

    12.9

    -9.1

    Borrowers with high loan to value ratios (more than 75%)

    Past three months

    -4.0

    -3.1

    4.5

    0.5

    3.6

    8.6

    Next three months

    3.6

    13.9

    -2.0

    8.8

    -1.9

    1.0

    Have you become more willing to lend to borrowers with housing equity less than 10% of the value of their home?

    Past three months

    4.4

    -1.0

    13.0

    -4.2

    6.1

    12.2

    Next three months

    -0.8

    5.3

    -6.8

    2.3

    1.8

    9.2

    How have credit scoring criteria for granting loan applications by households changed?

    Past three months

    -9.1

    -23.2

    4.5

    0.5

    3.3

    0.6

    Next three months

    -16.0

    7.9

    0.0

    4.1

    2.9

    -9.7

    How has the proportion of household loan applications being approved changed?

    Past three months

    -9.6

    -25.7

    -10.5

    17.6

    -10.8

    -20.7

    Next three months

    -10.8

    -8.0

    4.4

    -1.5

    -9.6

    9.4

    How has the average credit quality of new secured lending to households changed?

    Past three months

    9.1

    10.1

    8.6

    -4.8

    10.0

    6.9

    Next three months

    16.8

    9.0

    0.7

    9.2

    9.3

    1.7

    How has the default rate on secured loans to households changed?

    Past three months

    -14.1

    -3.9

    -1.1

    -6.9

    -4.0

    -21.8

    Next three months

    -0.6

    -11.8

    -0.9

    -6.0

    -9.1

    -15.3

    How have losses given default on secured loans to households changed?

    Past three months

    7.7

    0.9

    1.7

    7.8

    -1.3

    1.4

    Next three months

    8.1

    9.8

    10.9

    13.1

    1.9

    -0.6

    How has demand for secured lending for house purchase from households changed?

    Past three months

    -3.4

    -24.2

    1.8

    29.3

    12.5

    -12.7

    Next three months

    0.2

    -17.5

    -18.9

    3.0

    -1.1

    -14.3

    of which: demand for prime lending

    Past three months

    -3.4

    -15.6

    10.2

    27.6

    13.4

    -0.8

    Next three months

    7.2

    -16.8

    -17.0

    3.6

    0.8

    -5.4

    of which: demand for buy-to-let lending

    Past three months

    1.9

    -5.7

    6.4

    11.2

    -1.2

    3.6

    Next three months

    0.8

    -1.9

    -19.9

    8.0

    5.9

    -4.3

    How has demand for secured lending for remortgaging from households changed?

    Past three months

    33.2

    7.9

    21.8

    -22.5

    -12.2

    19.5

    Next three months

    23.3

    -6.9

    12.4

    7.5

    22.3

    -14.9

    How have overall secured lending spreads changed?

    Past three months

    7.7

    44.6

    0.0

    -50.9

    -55.8

    7.6

    Next three months

    21.8

    16.4

    -11.5

    -12.6

    5.6

    33.4

    of which: spreads on prime lending

    Past three months

    -3.2

    44.6

    -0.7

    -50.9

    -55.8

    7.6

    Next three months

    21.8

    16.4

    -11.5

    -12.6

    5.6

    33.4

    of which: spreads on buy-to-let lending

    Past three months

    23.7

    33.6

    9.0

    -43.5

    -48.3

    4.5

    Next three months

    9.2

    12.1

    -10.6

    -4.2

    6.3

    19.8

    How have fees on secured lending changed?

    Past three months

    -9.1

    9.0

    8.1

    8.7

    0.0

    9.4

    Next three months

    6.1

    -0.7

    -0.7

    8.7

    0.0

    0.0

    How have maximum loan to value ratios changed?

    Past three months

    5.8

    0.5

    12.0

    10.0

    7.1

    1.0

    Next three months

    -0.9

    8.7

    5.2

    6.6

    -6.1

    3.2

    How have maximum loan to income ratios changed?

    Past three months

    1.8

    -0.7

    0.5

    0.3

    -3.1

    9.5

    Next three months

    -1.5

    0.4

    0.3

    -9.4

    4.6

    3.2

    (a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question by their market shares. Positive balances indicate that lenders, on balance, reported/expected demand/credit availability/defaults to be higher than over the previous/current three-month period, or that the terms and conditions on which credit was provided became cheaper or looser respectively.
    (b) A positive balance indicates that the changes in the factors described have served to increase credit availability.

  • The methodology for calculating, and interpretation of the aggregate results are as described in Annex 1. A full set of results is available in Excel file at the end of this page.

    Net percentage balances (a)

    2018

    2019

    Q3

    Q4

    Q1

    Q2

    Q3

    Q4

    How has the availability of unsecured credit provided to households changed?

    Past three months

    -8.8

    -12.3

    -10.2

    -5.8

    -8.0

    -6.7

    Next three months

    -10.7

    -6.4

    -15.1

    0.7

    -3.9

    -2.9

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    -3.4

    0.0

    -1.4

    -1.2

    -2.6

    -3.3

    Next three months

    -1.5

    -0.9

    -11.8

    -2.6

    -3.7

    -3.4

    market share objectives

    Past three months

    -2.9

    -2.8

    -2.5

    -5.8

    -7.4

    -0.4

    Next three months

    3.4

    -1.8

    -8.7

    -0.3

    -5.3

    -1.1

    changing appetite for risk

    Past three months

    -0.7

    -5.7

    -1.2

    0.0

    0.8

    -1.9

    Next three months

    -3.1

    -0.4

    -8.7

    1.5

    -0.3

    -5.3

    changing cost/availability of funds

    Past three months

    -2.1

    -1.2

    -2.9

    8.6

    0.0

    1.5

    Next three months

    0.4

    0.7

    0.0

    9.0

    -0.4

    0.0

    How have credit scoring criteria for granting credit card loan applications by households changed?

    Past three months

    -8.2

    -6.8

    -8.8

    -10.2

    -15.8

    -19.1

    Next three months

    -5.8

    -7.7

    -21.3

    -14.6

    -16.9

    -18.9

    How have credit scoring criteria for granting other unsecured loan applications by households changed?

    Past three months

    -15.7

    -5.4

    -11.5

    -10.5

    -16.6

    -21.7

    Next three months

    -8.0

    -6.7

    -14.2

    -2.4

    -24.5

    -14.9

    How have credit scoring criteria for granting total unsecured loan applications by households changed?

    Past three months

    -9.5

    -6.6

    -9.2

    -10.3

    -15.9

    -19.5

    Next three months

    -6.1

    -7.6

    -20.1

    -12.7

    -18.1

    -18.2

    How has the proportion of credit card loan applications from households being approved changed?

    Past three months

    16.1

    4.8

    -11.2

    6.0

    -22.9

    -4.7

    Next three months

    -13.9

    -8.6

    -16.5

    -13.8

    -1.6

    -0.2

    How has the proportion of other unsecured loan applications from households being approved changed?

    Past three months

    -1.5

    -1.7

    -0.1

    -0.5

    12.1

    -2.6

    Next three months

    -14.6

    2.1

    -19.9

    2.5

    0.6

    13.9

    How has the proportion of total unsecured loan applications from households being approved changed?

    Past three months

    13.2

    3.7

    -9.4

    5.0

    -17.4

    -4.3

    Next three months

    -14.0

    -6.8

    -16.8

    -11.2

    -1.2

    2.0

    How has the average credit quality of new credit card lending to households changed? (c)

    Past three months

    16.7

    1.3

    -0.2

    7.5

    8.9

    -3.4

    Next three months

    6.2

    -7.2

    12.5

    8.5

    11.4

    12.0

    How has the average credit quality of new other unsecured lending to households changed? (c)

    Past three months

    19.4

    18.5

    22.3

    13.2

    31.6

    15.9

    Next three months

    4.6

    15.8

    9.8

    9.0

    5.1

    19.1

    How has the average credit quality of new total unsecured lending to households changed? (c)

    Past three months

    17.2

    4.1

    3.4

    8.4

    12.4

    -0.4

    Next three months

    6.0

    -3.5

    12.0

    8.5

    10.4

    13.1

    How has the default rate on credit card loans to households changed?

    Past three months

    -11.2

    12.7

    22.9

    24.8

    15.6

    -0.2

    Next three months

    2.0

    -0.6

    -7.8

    -2.7

    7.5

    7.4

    How has the default rate on other unsecured loans to households changed?

    Past three months

    -4.2

    0.0

    6.1

    7.4

    20.3

    13.7

    Next three months

    1.4

    2.0

    4.4

    9.0

    7.1

    -7.8

    How has the default rate on total unsecured loans to households changed?

    Past three months

    -10.0

    10.6

    20.2

    22.1

    16.3

    2.0

    Next three months

    1.9

    -0.2

    -5.9

    -0.8

    7.4

    5.0

    How have losses given default on credit card loans to households changed?

    Past three months

    1.3

    1.0

    -9.2

    -2.9

    -10.9

    -9.6

    Next three months

    0.0

    10.5

    10.2

    15.6

    -10.2

    -10.1

    How have losses given default on other unsecured loans to households changed?

    Past three months

    0.0

    7.1

    -11.3

    -11.4

    8.1

    -4.2

    Next three months

    -2.2

    7.0

    7.8

    11.4

    -1.1

    0.0

    How have losses given default on total unsecured loans to households changed?

    Past three months

    1.1

    2.0

    -9.6

    -4.3

    -7.9

    -8.8

    Next three months

    -0.4

    9.9

    9.8

    14.9

    -8.8

    -8.5

    How has demand for credit card lending from households changed?

    Past three months

    42.7

    27.7

    6.0

    -16.1

    -8.0

    -12.2

    Next three months

    -7.2

    -20.7

    -19.9

    15.3

    1.8

    14.3

    How has demand for other unsecured lending from households changed?

    Past three months

    4.7

    -17.5

    -7.9

    -4.9

    -3.9

    -19.4

    Next three months

    -6.4

    -1.6

    -5.1

    -13.0

    -9.3

    -1.5

    How has demand for total unsecured lending from households changed?

    Past three months

    36.4

    20.4

    3.8

    -14.3

    -7.4

    -13.3

    Next three months

    -7.1

    -17.6

    -17.5

    10.8

    0.1

    11.8

    How have spreads on credit cards changed?

    Past three months

    12.6

    7.4

    4.3

    7.1

    -10.9

    3.8

    Next three months

    15.7

    -2.1

    6.1

    6.0

    -1.9

    0.0

    How have spreads on other unsecured lending products changed?

    Past three months

    -3.8

    7.6

    -4.3

    -4.9

    -18.6

    -5.2

    Next three months

    2.8

    -2.0

    -3.9

    -11.9

    -4.6

    -5.6

    How have overall unsecured lending spreads changed?

    Past three months

    10.0

    7.3

    2.9

    5.2

    -12.4

    2.4

    Next three months

    13.8

    -2.0

    4.4

    3.3

    -2.3

    -0.8

    How have credit card limits changed?*

    Past three months

    -11.6

    -23.3

    6.0

    -18.0

    -8.0

    -16.8

    Next three months

    3.1

    11.9

    -13.6

    0.0

    -4.3

    5.4

    How has the minimum proportion of credit card balances to be paid changed?*

    Past three months

    1.9

    -10.5

    2.0

    -2.4

    -3.7

    12.7

    Next three months

    0.9

    0.0

    -5.4

    -3.4

    -3.4

    3.3

    How have the following terms on new credit card lending to households changed?

    Length of interest free period on balance transfers

    Past three months

    -10.9

    -41.7

    -30.7

    -34.7

    -31.4

    -11.8

    Next three months

    1.4

    -23.8

    -30.4

    -31.6

    -29.7

    -7.9

    Length of interest free period for purchases

    Past three months

    -23.2

    -42.8

    -22.7

    -23.2

    -38.1

    -24.3

    Next three months

    -10.8

    -23.8

    -29.0

    -19.6

    -13.6

    -13.4

    How have maximum maturities on loans changed? (d)*

    Past three months

    0.0

    2.2

    4.2

    4.0

    0.0

    -7.1

    Next three months

    0.0

    4.2

    4.5

    4.0

    0.0

    10.9

    (a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question by their market shares. Positive balances indicate that lenders, on balance, reported/expected demand/credit availability/defaults to be higher than over the previous/current three-month period, or that the terms and conditions on which credit was provided became cheaper or looser respectively.
    (b) A positive balance indicates that the changes in the factors described have served to increase credit availability/demand.
    (c) A positive balance indicates an improvement in the credit quality of new borrowing.
    (d) A positive balance indicates an increase in maximum maturities on new loans. The sign convention was changed in 2009 Q4 and was applied to the back data accordingly.
    * Update 03/02/2020: The 2019 Q4 data points for these questions were inverted in the original publication, these data have now been corrected.

  • The methodology for calculating, and interpretation of the aggregate results are as described in Annex 1. A full set of results is available in Excel file at the end of this page.

    Net percentage balances (a)

    2018

    2019

    Q3

    Q4

    Q1

    Q2

    Q3

    Q4

    How has the availability of credit provided to the corporate sector overall changed?

    Past three months

    -1.7

    -0.1

    -0.3

    -1.3

    -3.5

    -9.2

    Next three months

    -6.4

    -3.0

    -3.1

    -5.8

    -13.5

    -7.6

    of which: commercial real estate sector

    Past three months

    -0.7

    -11.1

    -2.9

    -0.8

    -10.3

    -20.4

    Next three months

    -1.8

    -13.0

    -3.8

    -1.6

    -23.9

    -18.8

    How have commercial property prices affected credit availability to the commercial real estate sector, and/or secured lending to PNFCs?

    Past three months

    0.0

    -11.1

    -1.4

    -2.6

    -15.4

    -19.2

    Next three months

    -10.2

    -22.7

    -2.7

    -3.4

    -19.7

    -19.2

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    -0.7

    8.9

    5.3

    10.3

    2.8

    -4.0

    Next three months

    -6.8

    15.5

    1.6

    9.6

    -4.9

    -8.6

    changing sector-specific risks

    Past three months

    -12.6

    13.5

    2.1

    8.3

    1.4

    -4.0

    Next three months

    -24.7

    17.1

    2.6

    8.9

    -7.1

    -10.0

    market share objectives

    Past three months

    0.2

    2.4

    2.3

    1.4

    3.5

    1.6

    Next three months

    1.2

    5.3

    2.3

    1.4

    0.7

    2.1

    market pressures from capital markets

    Past three months

    0.0

    2.0

    3.2

    0.0

    -0.8

    0.6

    Next three months

    0.0

    0.0

    3.2

    0.0

    0.0

    0.0

    changing appetite for risk

    Past three months

    3.0

    -7.2

    0.6

    -3.3

    -2.7

    1.4

    Next three months

    -4.9

    -6.7

    1.1

    -2.6

    -10.4

    0.7

    tight wholesale funding conditions

    Past three months

    0.7

    0.0

    1.1

    0.0

    0.8

    0.0

    Next three months

    0.7

    0.0

    1.1

    -1.8

    0.8

    0.0

    How has the availability of credit provided to small businesses changed?

    Past three months

    11.5

    -0.9

    -0.9

    -0.9

    -0.9

    -1.0

    Next three months

    -0.9

    0.0

    -0.9

    -0.9

    -13.3

    -12.4

    How has the availability of credit provided to medium PNFCs changed?

    Past three months

    0.0

    -5.9

    0.0

    -3.2

    -4.0

    -11.3

    Next three months

    -7.4

    0.0

    -3.2

    -3.2

    -15.3

    -16.3

    How has the availability of credit provided to large PNFCs changed?

    Past three months

    -1.4

    -0.9

    -2.0

    -1.7

    -4.0

    -11.4

    Next three months

    -2.2

    -0.9

    -2.0

    -2.6

    -15.4

    -15.5

    How has the proportion of loan applications from small businesses being approved changed?

    Past three months

    0.0

    -3.0

    0.0

    -11.8

    -15.2

    0.3

    Next three months

    0.0

    -6.9

    -0.9

    -11.8

    -0.9

    -2.4

    How has the proportion of loan applications from medium PNFCs being approved changed?

    Past three months

    0.0

    -2.0

    0.0

    0.0

    -0.8

    -2.9

    Next three months

    0.0

    -6.3

    -0.8

    -0.8

    -0.8

    -7.9

    How has the proportion of loan applications from large PNFCs being approved changed?

    Past three months

    -1.9

    1.6

    -3.4

    0.0

    -1.6

    -14.1

    Next three months

    -1.9

    -7.2

    -2.2

    -4.7

    -1.6

    -12.5

    Has there been a change in average credit quality on newly arranged PNFC borrowing facilities? (c)

    Past three months

    0.0

    0.4

    0.0

    0.0

    0.0

    -6.0

    Next three months

    0.0

    -0.6

    0.0

    0.0

    0.7

    -6.0

    Has there been any change in ‘target hold’ levels associated with corporate lending?

    Past three months

    -8.8

    0.0

    -1.6

    1.9

    11.3

    11.1

    Next three months

    0.0

    0.0

    0.8

    1.5

    3.6

    16.9

    How have loan tenors on new corporate loans changed? (d)

    Past three months

    8.8

    2.0

    0.0

    0.7

    -2.8

    0.0

    Next three months

    0.7

    0.0

    0.9

    -2.0

    -3.5

    0.0

    Has there been a change in draw-downs on committed lines by PNFCs?

    Past three months

    2.6

    0.7

    0.9

    2.8

    0.0

    -1.3

    Next three months

    3.6

    0.0

    4.6

    2.8

    0.0

    -2.4

    How has the default rate on loans to small businesses changed?

    Past three months

    11.3

    18.4

    8.8

    11.0

    17.3

    19.1

    Next three months

    0.0

    0.9

    5.6

    16.7

    10.3

    18.0

    How has the default rate on loans to medium PNFCs changed?

    Past three months

    10.4

    6.6

    1.1

    1.9

    10.4

    4.0

    Next three months

    0.0

    15.4

    16.7

    15.7

    10.4

    13.4

    How has the default rate on loans to large PNFCs changed?

    Past three months

    10.3

    0.0

    11.7

    12.5

    10.5

    9.9

    Next three months

    0.0

    3.1

    11.7

    12.6

    13.3

    9.9

    How has loss given default on loans to small businesses changed?

    Past three months

    0.0

    0.0

    0.0

    0.9

    0.0

    12.2

    Next three months

    0.8

    0.9

    5.6

    0.0

    14.4

    12.2

    How has loss given default on loans to medium PNFCs changed?

    Past three months

    0.0

    0.0

    -10.4

    0.8

    0.0

    1.1

    Next three months

    11.5

    -9.7

    5.3

    0.0

    0.0

    10.3

    How has loss given default on loans to large PNFCs changed?

    Past three months

    -4.0

    1.4

    3.2

    0.8

    0.0

    0.0

    Next three months

    2.1

    1.4

    0.0

    0.0

    0.0

    9.9

    How has demand for credit card lending from small businesses changed?

    Past three months

    13.7

    0.0

    10.9

    10.8

    10.8

    0.0

    Next three months

    6.8

    0.0

    0.0

    4.5

    0.0

    0.0

    How has demand for other unsecured lending from small businesses changed?

    Past three months

    -16.4

    0.0

    7.4

    -7.3

    4.4

    -16.1

    Next three months

    0.0

    10.6

    24.6

    -7.9

    8.3

    0.0

    How has demand for total unsecured lending from small businesses changed?

    Past three months

    8.9

    0.0

    10.4

    7.8

    10.2

    -2.7

    Next three months

    5.8

    1.8

    3.8

    2.4

    1.4

    0.0

    How has demand for secured lending from small businesses changed?

    Past three months

    -1.7

    -20.5

    -12.2

    7.3

    -5.0

    -0.8

    Next three months

    -0.9

    -1.1

    -3.8

    -4.0

    -5.0

    -1.6

    How has overall demand for lending from small businesses changed?

    Past three months

    -11.5

    -15.6

    -16.5

    -12.0

    -5.3

    -19.0

    Next three months

    -0.9

    -5.8

    -4.3

    -3.0

    2.1

    7.0

    How has demand for lending from medium PNFCs changed?

    Past three months

    5.5

    5.0

    -19.0

    -3.1

    -23.0

    -15.4

    Next three months

    -0.8

    -11.5

    -6.3

    -2.8

    -11.8

    -18.4

    How has demand for lending from large PNFCs changed?

    Past three months

    -19.9

    -12.0

    -13.1

    -6.0

    -5.7

    -18.9

    Next three months

    -12.5

    -22.9

    -10.4

    -8.5

    -8.5

    -17.6

    How has demand for lending from OFCs changed?

    Past three months

    11.3

    0.0

    -7.2

    4.8

    0.0

    -2.1

    Next three months

    0.0

    0.0

    -7.2

    -3.4

    0.0

    -2.1

    What have been the main factors contributing to changes in demand for lending: (b)

    mergers and acquisitions

    Past three months

    -0.4

    -10.1

    -17.2

    4.2

    -20.1

    -18.4

    Next three months

    3.6

    -8.5

    -14.9

    -5.8

    -30.4

    -11.9

    capital investment

    Past three months

    -14.4

    -12.1

    -15.5

    -6.0

    -14.9

    -15.3

    Next three months

    -17.3

    -14.2

    -9.6

    -8.1

    -18.5

    -27.4

    inventory finance

    Past three months

    9.3

    3.0

    9.3

    -3.7

    8.7

    -0.2

    Next three months

    13.6

    9.8

    2.9

    -1.0

    5.9

    9.5

    balance sheet restructuring

    Past three months

    -1.8

    1.0

    -6.3

    4.8

    -1.8

    -4.4

    Next three months

    1.1

    0.7

    -5.2

    2.5

    -8.6

    -8.8

    commercial real estate

    Past three months

    -0.7

    -9.6

    -21.0

    -11.5

    -32.4

    -25.2

    Next three months

    -1.8

    -22.5

    -21.9

    -13.8

    -33.8

    -17.0

    How have spreads on loans to small businesses changed?

    Past three months

    0.8

    1.1

    11.3

    2.1

    0.0

    9.2

    Next three months

    0.8

    0.0

    0.0

    10.8

    10.8

    -2.4

    How have fees/commissions on loans to small businesses changed?

    Past three months

    0.8

    0.0

    0.0

    0.0

    0.0

    -1.4

    Next three months

    0.8

    0.0

    0.0

    0.0

    0.0

    -2.4

    How have collateral requirements for loans to small businesses changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    0.0

    -1.0

    Next three months

    -11.2

    0.0

    0.0

    -0.9

    -0.9

    0.0

    How have maximum credit lines for small businesses changed?

    Past three months

    11.3

    -0.9

    0.0

    0.0

    -0.9

    -1.0

    Next three months

    0.0

    -0.9

    0.0

    -0.9

    -0.9

    0.0

    How have loan covenants for small businesses changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Next three months

    0.0

    0.0

    0.0

    0.0

    -1.6

    1.7

    How have spreads on loans to medium PNFCs changed?

    Past three months

    0.0

    0.0

    -0.8

    -9.7

    -13.5

    -13.4

    Next three months

    0.8

    0.8

    0.0

    -1.8

    0.0

    -2.2

    How have fees/commissions on loans to medium PNFCs changed?

    Past three months

    -0.8

    -0.8

    -0.8

    0.0

    0.0

    -2.0

    Next three months

    0.0

    -0.8

    -0.8

    0.0

    0.0

    -2.0

    How have collateral requirements for loans to medium PNFCs changed?

    Past three months

    0.0

    0.0

    0.0

    -3.1

    -3.1

    -0.9

    Next three months

    0.8

    0.0

    -3.2

    -3.9

    -4.0

    -0.9

    How have maximum credit lines for medium PNFCs changed?

    Past three months

    2.8

    0.0

    0.0

    0.0

    -11.4

    0.0

    Next three months

    0.0

    0.0

    0.0

    -0.8

    -11.4

    0.0

    How have loan covenants for medium PNFCs changed?

    Past three months

    0.0

    -0.8

    -0.8

    -0.8

    0.0

    0.0

    Next three months

    0.0

    -0.8

    -0.8

    0.0

    0.1

    0.0

    How have spreads on loans to large PNFCs changed?

    Past three months

    6.8

    1.7

    0.7

    1.9

    3.3

    -5.2

    Next three months

    1.9

    -2.6

    1.1

    0.8

    -3.2

    -7.7

    How have fees/commissions on loans to large PNFCs changed?

    Past three months

    2.8

    2.0

    -1.1

    2.8

    1.8

    -5.8

    Next three months

    0.0

    0.0

    0.0

    0.1

    7.1

    -8.3

    How have collateral requirements for loans to large PNFCs changed?

    Past three months

    0.0

    0.0

    0.0

    0.7

    0.7

    0.0

    Next three months

    0.0

    0.0

    0.0

    0.7

    -0.1

    0.0

    How have maximum credit lines for large PNFCs changed?

    Past three months

    -1.4

    2.5

    -0.6

    -0.8

    -14.7

    -16.3

    Next three months

    -1.4

    -0.6

    -0.6

    -3.9

    -14.5

    -16.3

    How have loan covenants for large PNFCs changed?

    Past three months

    13.8

    2.8

    2.0

    2.7

    2.7

    -7.5

    Next three months

    1.9

    0.0

    0.0

    0.7

    -3.2

    -9.9

    How have spreads on loans to OFCs changed?

    Past three months

    0.3

    -0.8

    13.5

    -9.0

    -9.5

    8.9

    Next three months

    0.3

    -0.8

    13.5

    2.4

    -9.5

    8.9

    How have fees/commissions on loans to OFCs changed?

    Past three months

    9.5

    -0.8

    -11.6

    -11.4

    -9.5

    2.4

    Next three months

    -0.8

    -0.8

    -0.8

    -0.9

    -9.5

    2.4

    How have collateral requirements for loans to OFCs changed?

    Past three months

    10.8

    0.0

    0.0

    0.0

    -3.2

    0.0

    Next three months

    0.0

    0.0

    0.0

    0.0

    -4.1

    0.0

    How have maximum credit lines for OFCs changed?

    Past three months

    11.1

    0.0

    0.0

    0.0

    2.4

    0.0

    Next three months

    0.0

    0.0

    0.0

    0.0

    -0.9

    0.0

    (a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question by their market shares. Positive balances indicate that lenders, on balance, reported/expected demand/credit availability/defaults to be higher than over the previous/current three-month period, or that the terms and conditions on which credit was provided became cheaper or looser respectively.
    (b) A positive balance indicates that the changes in the factors described have served to increase credit availability/demand.
    (c) A positive balance indicates an improvement in the credit quality of new borrowing.
    (d) A positive balance indicates an increase in new corporate loan tenors. The sign convention was changed in 2009 Q3 and was applied to the back data accordingly.

Next publication date: 16 April 2020.

ISSN 1755-8247

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