Credit Conditions Survey - 2020 Q4

This quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions.
Published on 21 January 2021

Overview

As part of our mission to maintain monetary and financial stability, we need to understand trends and developments in credit conditions. This quarterly survey of bank and building society lenders is an input to this work. The survey covers:

  • Secured and unsecured lending to households.
  • Lending to non-financial corporations, small businesses, and to non-bank financial firms.

This report presents the results of the 2020 Q4 survey. It was conducted between 23 November and 11 December 2020. Any impact from more recent developments will therefore not be captured. Lenders were asked to report changes in the three months to end-November 2020 (Q4), relative to the period between June and August, and expected changes in the three months to end-February 2021 (Q1), relative to the period between September and November.

The results are based on lenders’ own responses to the survey, and are reported as net percentage balances. The results do not necessarily reflect our views on credit conditions. You can read a full guide to interpreting the survey and copies of the questionnaires at the end of this page.

You can also read more background information on the survey in the 2007 Q3 Quarterly Bulletin article ‘The Bank of England Credit Conditions Survey’.

The 2021 Q1 Credit Conditions Survey will be published on 15 April 2021.

Supply

  • Lenders reported that the availability of secured credit to households was unchanged in the three months to end-November 2020 (Q4). Lenders expected the availability of secured credit to increase over the next three months to end-February 2021 (Q1) (Chart 1).
  • Lenders reported that the availability of unsecured credit to households increased slightly in Q4 and was expected to remain unchanged over the next quarter (Chart 2).
  • Lenders reported that the overall availability of credit to the corporate sector was unchanged in Q4, decreasing for small businesses and remaining unchanged for medium and large firms. Overall availability was not expected to change in Q1.

Chart 1: Household secured credit availability (a)(b)(c)

The bars show the net percentage balance of responses from 2007 Q2 to 2020 Q4 and the diamond shows future expectations for 2021 Q1. The balance for 2020 Q4 was 2.4 and the expected balance for 2020 Q1 was 24.7.

Footnotes

  • (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 diamond shows the expectation over the next three months. Expectations data can be used as an indicator of the potential direction and magnitude of the change expected in the next quarter, but should not be treated as a realised outturn. Previous expectations balances are available in full in the annex.
  • (b) Question: ‘How has the availability of secured credit provided to households changed?’.
  • (c) A positive balance indicates an increase in credit availability.

Chart 2: Household unsecured credit availability (a)(b)(c)

The bars show the net percentage balance of responses from 2007 Q2 to 2020 Q4 and the diamond shows future expectations for 2021 Q1. The balance for 2020 Q4 was 9.1 and the expected balance for 2020 Q1 was 4.2.

Footnotes

  • (a) See footnote (a) to Chart 1.
  • (b) Question: ‘How has the availability of unsecured credit provided to households changed?’.
  • (c) A positive balance indicates that more unsecured credit is available.

Demand

  • Lenders reported that demand for secured lending for house purchase increased in Q4, but demand for secured lending for remortgaging was unchanged over the same period. Demand for secured lending for house purchase was expected to decrease slightly in Q1, but demand for secured lending for remortgaging was expected to increase slightly (Chart 3).
  • Lenders reported that overall demand for unsecured lending increased in Q4, and was expected to increase further in Q1. Within the overall figure, demand for credit card lending increased slightly and demand for other unsecured lending increased in Q4. Demand for credit card lending was expected to increase over the next quarter, with demand for other unsecured lending expected to remain unchanged (Chart 4).
  • Lenders reported that demand for corporate lending from small businesses decreased slightly in Q4, and demand from medium sized businesses decreased whereas demand from large private non-financial corporations (PNFCs) increased over the same period (Chart 5). Demand for corporate lending was expected to decrease for small businesses in Q1 but increase for medium and large businesses over the next quarter.

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

The bars show the net percentage balance of responses from 2015 Q1 to 2020 Q4 and the diamonds show future expectations for 2021 Q1. The balance for house purchases for 2020 Q4 was 31.5 and the expected balance for 2020 Q1 was minus 8.8. The balance for remortgaging for 2020 Q4 was 2.3 and the expected balance for 2020 Q1 was 7.8.

Footnotes

  • (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)(c)

The bars show the net percentage balance of responses from 2015 Q1 to 2020 Q4 and the diamonds show future expectations for 2021 Q1. The balance for credit cards for 2020 Q4 was 9.8 and the expected balance for 2020 Q1 was 27.4. The balance for other unsecured for 2020 Q4 was 27.1 and the expected balance for 2020 Q1 was minus 0.1.

Footnotes

  • (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)(c)

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Footnotes

  • (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

  • Lenders reported that overall spreads on secured lending to households – relative to Bank Rate or the appropriate swap rate – widened in Q4, but were expected to narrow in Q1.
  • Lenders reported that overall unsecured lending spreads were unchanged in Q4 and were expected to remain unchanged in Q1. Lenders also reported that the length of interest-free periods on credit cards for balance transfers decreased in Q4, and was expected to decrease slightly in the next quarter. The length of interest-free periods on credit cards for purchases was unchanged in Q4, and was expected to remain unchanged in Q1.
  • Lenders reported that spreads on corporate lending to small businesses widened in Q4, and widened slightly for medium and large businesses. Spreads on lending to small and medium businesses were expected to widen slightly over the next quarter, and were expected to widen for large firms.

Defaults

  • The net percentage balance for changes in default rates on secured loans to households remained unchanged in Q4, but was expected to increase in Q1. The net percentage balance for changes in losses given default on secured loans decreased slightly in Q4, and was expected to remain unchanged in Q1.
  • The net percentage balance for changes in default rates for total unsecured lending decreased in Q4, but was expected to increase in Q1.
  • The net percentage balance for changes in default rates on loans to corporates increased for small and large businesses in Q4, but increased only slightly medium businesses. These balances were expected to increase for all business sizes in Q1. The net percentage balance for changes in losses given default was unchanged for businesses of all sizes in Q4, but was expected to increase for all businesses in Q1.

How to interpret this survey

This report presents the results of the 2020 Q4 survey. It was conducted between 23 November and 11 December 2020. The results are based on lenders’ own responses to the survey. They do not necessarily reflect our 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.

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)

    2019

    2020

    Q3

    Q4

    Q1

    Q2

    Q3

    Q4

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

    Past three months

    -1.0

    15.2

    -3.5

    -72.1

    9.5

    2.4

    Next three months

    7.9

    -11.2

    -22.8

    -22.2

    -3.5

    24.7

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    -6.0

    -3.2

    -13.5

    -79.5

    -23.7

    -1.9

    Next three months

    -20.3

    -11.2

    -65.0

    -54.0

    -22.4

    4.8

    market share objectives

    Past three months

    0.7

    24.4

    2.2

    -10.5

    13.6

    11.6

    Next three months

    10.9

    -13.2

    -6.7

    4.0

    5.3

    1.2

    changing appetite for risk

    Past three months

    -3.5

    -8.7

    2.6

    -35.0

    -6.2

    -2.0

    Next three months

    -11.2

    0.0

    -32.2

    -41.8

    -0.8

    11.9

    tight wholesale funding conditions

    Past three months

    0.0

    1.2

    -2.3

    -6.7

    7.3

    8.9

    Next three months

    -2.1

    0.0

    -18.5

    -6.7

    -1.9

    -1.8

    expectations for house prices

    Past three months

    -2.8

    4.7

    -10.1

    -55.1

    -8.2

    18.9

    Next three months

    -7.4

    -1.0

    -30.6

    -48.5

    -25.4

    0.7

    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

    3.7

    7.0

    -8.9

    -33.6

    -8.9

    -9.9

    Next three months

    12.9

    -9.1

    -5.7

    -19.6

    -11.1

    -1.5

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

    Past three months

    3.6

    8.6

    -4.1

    -83.1

    2.0

    6.8

    Next three months

    -1.9

    1.0

    -25.1

    -1.7

    4.5

    26.1

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

    Past three months

    6.1

    12.2

    6.6

    -90.5

    -3.4

    4.3

    Next three months

    1.8

    9.2

    -21.0

    -19.0

    3.2

    3.6

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

    Past three months

    3.3

    0.6

    -6.4

    -62.4

    -44.1

    -17.8

    Next three months

    2.9

    -9.7

    -32.7

    -31.8

    -7.4

    -11.4

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

    Past three months

    -10.8

    -20.7

    0.7

    -38.3

    -30.1

    16.2

    Next three months

    -9.6

    9.4

    -26.3

    -38.8

    -4.7

    -2.1

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

    Past three months

    10.0

    6.9

    2.4

    18.1

    30.9

    29.2

    Next three months

    9.3

    1.7

    4.6

    20.9

    11.0

    0.6

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

    Past three months

    -4.0

    -21.8

    -29.7

    6.6

    4.8

    0.8

    Next three months

    -9.1

    -15.3

    16.4

    26.4

    59.8

    41.1

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

    Past three months

    -1.3

    1.4

    4.8

    -14.0

    5.8

    -7.3

    Next three months

    1.9

    -0.6

    11.9

    51.4

    13.2

    -0.5

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

    Past three months

    12.5

    -12.7

    27.9

    -79.0

    95.6

    31.5

    Next three months

    -1.1

    -14.3

    -70.8

    18.5

    -1.9

    -8.8

    of which: demand for prime lending

    Past three months

    13.4

    -0.8

    28.3

    -83.7

    63.0

    31.5

    Next three months

    0.8

    -5.4

    -71.8

    18.5

    -1.9

    -20.1

    of which: demand for buy-to-let lending

    Past three months

    -1.2

    3.6

    41.2

    -84.9

    74.2

    37.5

    Next three months

    5.9

    -4.3

    -66.3

    21.5

    12.5

    -25.2

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

    Past three months

    -12.2

    19.5

    38.5

    -54.9

    -13.5

    2.3

    Next three months

    22.3

    -14.9

    -32.0

    21.1

    8.0

    7.8

    How have overall secured lending spreads changed?

    Past three months

    -55.8

    7.6

    -4.2

    -61.8

    -79.1

    -41.9

    Next three months

    5.6

    33.4

    -37.0

    -25.5

    -32.2

    33.9

    of which: spreads on prime lending

    Past three months

    -55.8

    7.6

    -4.2

    -61.8

    -81.8

    -41.9

    Next three months

    5.6

    33.4

    -37.0

    -17.2

    -30.4

    33.9

    of which: spreads on buy-to-let lending

    Past three months

    -48.3

    4.5

    -16.0

    -57.5

    -60.8

    -43.3

    Next three months

    6.3

    19.8

    -37.0

    -25.5

    -22.6

    23.9

    How have fees on secured lending changed?

    Past three months

    0.0

    9.4

    9.6

    16.9

    5.9

    -19.8

    Next three months

    0.0

    0.0

    -18.2

    -9.9

    0.0

    17.4

    How have maximum loan to value ratios changed?

    Past three months

    7.1

    1.0

    1.9

    -76.3

    -15.4

    28.8

    Next three months

    -6.1

    3.2

    -15.1

    8.3

    25.9

    29.8

    How have maximum loan to income ratios changed?

    Past three months

    -3.1

    9.5

    -6.5

    -11.2

    -7.9

    -3.4

    Next three months

    4.6

    3.2

    -18.2

    -2.1

    -11.2

    10.3

    Footnotes

    • (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)

    2019

    2020

    Q3

    Q4

    Q1

    Q2

    Q3

    Q4

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

    Past three months

    -8.0

    -6.7

    5.5

    -63.3

    -33.6

    9.1

    Next three months

    -3.9

    -2.9

    -26.4

    -24.9

    -10.0

    4.2

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    -2.6

    -3.3

    -4.5

    -64.1

    -42.4

    -11.8

    Next three months

    -3.7

    -3.4

    -31.4

    -14.2

    -16.4

    -2.3

    market share objectives

    Past three months

    -7.4

    -0.4

    9.8

    -0.3

    4.5

    8.0

    Next three months

    -5.3

    -1.1

    -9.6

    3.1

    6.9

    6.1

    changing appetite for risk

    Past three months

    0.8

    -1.9

    -3.5

    -38.9

    -26.6

    -1.8

    Next three months

    -0.3

    -5.3

    -18.4

    -12.4

    -2.3

    -2.0

    changing cost/availability of funds

    Past three months

    0.0

    1.5

    0.0

    -1.5

    -0.2

    0.5

    Next three months

    -0.4

    0.0

    4.9

    -0.8

    1.1

    -0.9

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

    Past three months

    -15.8

    -19.1

    -22.3

    -46.8

    -34.6

    -24.4

    Next three months

    -16.9

    -18.9

    -34.9

    -21.7

    -26.2

    5.5

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

    Past three months

    -16.6

    -21.7

    -25.8

    -73.8

    -35.7

    -4.7

    Next three months

    -24.5

    -14.9

    -21.6

    -27.2

    -19.2

    -1.9

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

    Past three months

    -15.9

    -19.5

    -22.9

    -51.0

    -34.8

    -21.5

    Next three months

    -18.1

    -18.2

    -32.8

    -22.6

    -25.1

    4.5

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

    Past three months

    -22.9

    -4.7

    -13.3

    -70.0

    -1.2

    3.9

    Next three months

    -1.6

    -0.2

    -39.6

    -11.6

    -10.6

    4.0

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

    Past three months

    12.1

    -2.6

    6.1

    -47.5

    -10.2

    7.0

    Next three months

    0.6

    13.9

    -12.5

    13.8

    -22.3

    13.5

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

    Past three months

    -17.4

    -4.3

    -10.3

    -66.4

    -2.5

    4.3

    Next three months

    -1.2

    2.0

    -35.4

    -7.6

    -12.4

    5.4

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

    Past three months

    8.9

    -3.4

    3.7

    31.7

    34.8

    -0.8

    Next three months

    11.4

    12.0

    17.8

    -8.3

    -9.1

    -2.2

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

    Past three months

    31.6

    15.9

    28.9

    3.0

    42.5

    4.4

    Next three months

    5.1

    19.1

    1.9

    4.6

    -7.2

    0.3

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

    Past three months

    12.4

    -0.4

    7.6

    27.2

    36.0

    0.0

    Next three months

    10.4

    13.1

    15.3

    -6.3

    -8.8

    -1.8

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

    Past three months

    15.6

    -0.2

    14.1

    6.4

    -7.9

    -42.2

    Next three months

    7.5

    7.4

    0.3

    26.8

    47.2

    20.4

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

    Past three months

    20.3

    13.7

    -5.3

    42.1

    -23.1

    19.2

    Next three months

    7.1

    -7.8

    11.0

    4.3

    53.0

    19.2

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

    Past three months

    16.3

    2.0

    11.0

    12.1

    -10.2

    -33.3

    Next three months

    7.4

    5.0

    2.0

    23.2

    48.1

    20.3

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

    Past three months

    -10.9

    -9.6

    -11.5

    -9.5

    -1.8

    0.0

    Next three months

    -10.2

    -10.1

    4.3

    4.5

    20.6

    1.3

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

    Past three months

    8.1

    -4.2

    -3.1

    17.8

    -10.9

    3.8

    Next three months

    -1.1

    0.0

    9.5

    20.7

    29.8

    -2.1

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

    Past three months

    -7.9

    -8.8

    -10.2

    -5.2

    -3.2

    0.5

    Next three months

    -8.8

    -8.5

    5.1

    7.1

    22.0

    0.9

    How has demand for credit card lending from households changed?

    Past three months

    -8.0

    -12.2

    39.8

    -82.5

    -18.2

    9.8

    Next three months

    1.8

    14.3

    -7.7

    33.8

    15.1

    27.4

    How has demand for other unsecured lending from households changed?

    Past three months

    -3.9

    -19.4

    -18.8

    -90.7

    7.4

    27.1

    Next three months

    -9.3

    -1.5

    -4.9

    11.8

    23.6

    -0.1

    How has demand for total unsecured lending from households changed?

    Past three months

    -7.4

    -13.3

    30.6

    -83.8

    -14.3

    12.3

    Next three months

    0.1

    11.8

    -7.2

    30.4

    16.4

    23.4

    How have spreads on credit cards changed?

    Past three months

    -10.9

    3.8

    -16.0

    2.9

    -9.0

    0.5

    Next three months

    -1.9

    0.0

    -1.2

    0.0

    -21.9

    6.2

    How have spreads on other unsecured lending products changed?

    Past three months

    -18.6

    -5.2

    9.9

    11.5

    5.5

    -14.9

    Next three months

    -4.6

    -5.6

    -0.6

    11.5

    -21.0

    -13.7

    How have overall unsecured lending spreads changed?

    Past three months

    -12.4

    2.4

    -12.1

    4.2

    -6.9

    -1.6

    Next three months

    -2.3

    -0.8

    -1.1

    1.8

    -21.7

    3.4

    How have credit card limits changed?

    Past three months

    -8.0

    16.8

    15.8

    -5.7

    -21.9

    -20.0

    Next three months

    -4.3

    -5.4

    -17.3

    -7.9

    -18.7

    2.6

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

    Past three months

    -3.7

    -12.7

    0.0

    -5.2

    -6.8

    9.8

    Next three months

    -3.4

    -3.3

    9.3

    0.0

    15.0

    6.4

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

    Length of interest free period on balance transfers

    Past three months

    -31.4

    -11.8

    -3.4

    -28.2

    -24.1

    -12.1

    Next three months

    -29.7

    -7.9

    -19.5

    -37.2

    -7.5

    -6.9

    Length of interest free period for purchases

    Past three months

    -38.1

    -24.3

    -15.1

    -27.1

    -22.7

    0.0

    Next three months

    -13.6

    -13.4

    -15.7

    -34.8

    -7.5

    -4.8

    How have maximum maturities on loans changed? (d)

    Past three months

    0.0

    -7.1

    0.0

    -15.7

    2.0

    4.0

    Next three months

    0.0

    10.9

    -2.6

    0.0

    0.0

    0.0

    Footnotes

    • (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.
  • 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)

    2019

    2020

    Q3

    Q4

    Q1

    Q2

    Q3

    Q4

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

    Past three months

    -3.5

    -9.2

    0.8

    71.0

    8.7

    -0.5

    Next three months

    -13.5

    -7.6

    28.4

    5.5

    -12.4

    2.6

    of which: commercial real estate sector

    Past three months

    -10.3

    -20.4

    0.0

    10.0

    -30.0

    -23.5

    Next three months

    -23.9

    -18.8

    7.3

    -18.7

    -9.1

    -0.7

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

    Past three months

    -15.4

    -19.2

    -11.9

    -33.5

    -14.3

    -10.6

    Next three months

    -19.7

    -19.2

    -28.4

    -33.8

    -14.7

    -21.1

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    2.8

    -4.0

    8.1

    70.0

    25.0

    -3.8

    Next three months

    -4.9

    -8.6

    31.1

    4.7

    6.8

    5.6

    changing sector-specific risks

    Past three months

    1.4

    -4.0

    -1.2

    55.9

    18.2

    -5.4

    Next three months

    -7.1

    -10.0

    23.4

    10.2

    8.7

    -0.6

    market share objectives

    Past three months

    3.5

    1.6

    0.0

    0.3

    -2.2

    -0.2

    Next three months

    0.7

    2.1

    -10.6

    -1.1

    -2.2

    -0.2

    market pressures from capital markets

    Past three months

    -0.8

    0.6

    2.2

    7.8

    1.7

    2.5

    Next three months

    0.0

    0.0

    27.2

    2.4

    0.6

    1.4

    changing appetite for risk

    Past three months

    -2.7

    1.4

    1.0

    13.9

    3.2

    -14.2

    Next three months

    -10.4

    0.7

    18.3

    -10.4

    -8.6

    -1.2

    tight wholesale funding conditions

    Past three months

    0.8

    0.0

    -1.1

    -15.3

    7.8

    -9.2

    Next three months

    0.8

    0.0

    -26.8

    -8.2

    0.0

    -9.2

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

    Past three months

    -0.9

    -1.0

    -1.4

    78.7

    6.4

    -19.3

    Next three months

    -13.3

    -12.4

    39.0

    7.4

    -8.8

    -2.1

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

    Past three months

    -4.0

    -11.3

    0.0

    77.1

    6.6

    3.3

    Next three months

    -15.3

    -16.3

    35.9

    6.2

    -24.1

    -2.0

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

    Past three months

    -4.0

    -11.4

    2.2

    69.5

    -6.4

    -1.5

    Next three months

    -15.4

    -15.5

    28.0

    0.0

    0.0

    6.7

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

    Past three months

    -15.2

    0.3

    -1.3

    78.6

    31.7

    -22.6

    Next three months

    -0.9

    -2.4

    8.6

    -2.1

    -27.8

    -44.9

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

    Past three months

    -0.8

    -2.9

    -1.1

    55.2

    0.0

    -2.0

    Next three months

    -0.8

    -7.9

    -1.0

    10.4

    -6.2

    -7.4

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

    Past three months

    -1.6

    -14.1

    -1.0

    20.3

    -2.3

    -2.7

    Next three months

    -1.6

    -12.5

    1.0

    3.9

    -2.0

    -4.7

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

    Past three months

    0.0

    -6.0

    -2.0

    -35.6

    -18.9

    -16.3

    Next three months

    0.7

    -6.0

    -25.6

    -23.5

    -23.8

    -13.6

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

    Past three months

    11.3

    11.1

    0.0

    8.7

    -1.7

    -1.1

    Next three months

    3.6

    16.9

    -2.0

    8.0

    7.8

    -1.8

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

    Past three months

    -2.8

    0.0

    -3.6

    -13.5

    -3.8

    -3.8

    Next three months

    -3.5

    0.0

    -11.7

    -3.1

    11.1

    0.8

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

    Past three months

    0.0

    -1.3

    5.2

    80.2

    -23.7

    -12.2

    Next three months

    0.0

    -2.4

    53.9

    16.9

    18.1

    14.7

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

    Past three months

    17.3

    19.1

    23.0

    22.5

    4.6

    13.6

    Next three months

    10.3

    18.0

    72.2

    50.0

    39.4

    33.1

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

    Past three months

    10.4

    4.0

    -3.8

    22.6

    14.5

    7.3

    Next three months

    10.4

    13.4

    62.1

    52.3

    46.1

    25.9

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

    Past three months

    10.5

    9.9

    12.0

    10.7

    16.0

    22.8

    Next three months

    13.3

    9.9

    63.5

    37.6

    22.2

    28.6

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

    Past three months

    0.0

    12.2

    15.7

    20.3

    -17.8

    -1.5

    Next three months

    14.4

    12.2

    56.4

    58.5

    27.6

    29.4

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

    Past three months

    0.0

    1.1

    -3.7

    27.6

    5.1

    -1.3

    Next three months

    0.0

    10.3

    44.5

    39.2

    23.5

    14.7

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

    Past three months

    0.0

    0.0

    4.2

    13.6

    4.4

    2.0

    Next three months

    0.0

    9.9

    41.6

    36.9

    13.3

    11.1

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

    Past three months

    10.8

    0.0

    0.0

    -79.1

    -4.2

    -11.7

    Next three months

    0.0

    0.0

    16.0

    20.9

    0.0

    17.7

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

    Past three months

    4.4

    -16.1

    -7.1

    79.1

    -27.5

    -11.7

    Next three months

    8.3

    0.0

    54.0

    -31.4

    -27.2

    9.1

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

    Past three months

    10.2

    -2.7

    -1.2

    -54.6

    -8.2

    -11.7

    Next three months

    1.4

    0.0

    22.3

    12.8

    -4.7

    16.4

    How has demand for secured lending from small businesses changed?

    Past three months

    -5.0

    -0.8

    -0.7

    58.0

    -71.4

    -18.1

    Next three months

    -5.0

    -1.6

    65.3

    -25.9

    13.4

    14.0

    How has overall demand for lending from small businesses changed?

    Past three months

    -5.3

    -19.0

    -8.4

    89.5

    14.5

    -6.1

    Next three months

    2.1

    7.0

    90.2

    -13.1

    -25.5

    -14.3

    How has demand for lending from medium PNFCs changed?

    Past three months

    -23.0

    -15.4

    9.2

    90.0

    -45.4

    -10.6

    Next three months

    -11.8

    -18.4

    77.2

    -25.6

    8.3

    16.6

    How has demand for lending from large PNFCs changed?

    Past three months

    -5.7

    -18.9

    3.4

    84.2

    -19.6

    13.7

    Next three months

    -8.5

    -17.6

    77.3

    -27.0

    -10.7

    28.9

    How has demand for lending from OFCs changed?

    Past three months

    0.0

    -2.1

    0.0

    -12.1

    -0.7

    -5.2

    Next three months

    0.0

    -2.1

    37.5

    -7.8

    -10.2

    -12.8

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

    mergers and acquisitions

    Past three months

    -20.1

    -18.4

    -14.5

    -85.6

    -36.6

    6.1

    Next three months

    -30.4

    -11.9

    -52.8

    12.6

    18.9

    33.9

    capital investment

    Past three months

    -14.9

    -15.3

    -8.2

    -53.3

    -38.0

    -16.5

    Next three months

    -18.5

    -27.4

    -52.3

    -14.8

    -18.5

    -6.8

    inventory finance

    Past three months

    8.7

    -0.2

    3.2

    -6.2

    1.5

    -1.9

    Next three months

    5.9

    9.5

    64.4

    38.3

    11.2

    15.3

    balance sheet restructuring

    Past three months

    -1.8

    -4.4

    5.2

    26.5

    4.7

    19.9

    Next three months

    -8.6

    -8.8

    50.7

    28.5

    16.1

    8.1

    commercial real estate

    Past three months

    -32.4

    -25.2

    -20.5

    -49.6

    -54.4

    20.0

    Next three months

    -33.8

    -17.0

    8.0

    -24.4

    -34.2

    15.1

    How have spreads on loans to small businesses changed? (c)

    Past three months

    0.0

    9.2

    -4.9

    27.5

    1.2

    -19.2

    Next three months

    10.8

    -2.4

    29.7

    11.4

    -14.2

    -7.2

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

    Past three months

    0.0

    -1.4

    1.3

    45.5

    3.7

    -4.9

    Next three months

    0.0

    -2.4

    16.9

    11.6

    0.0

    -4.9

    How have collateral requirements for loans to small businesses changed?

    Past three months

    0.0

    -1.0

    0.0

    19.6

    0.0

    -1.0

    Next three months

    -0.9

    0.0

    -3.1

    2.5

    -3.7

    -9.8

    How have maximum credit lines for small businesses changed?

    Past three months

    -0.9

    -1.0

    -1.3

    4.9

    0.0

    -1.0

    Next three months

    -0.9

    0.0

    -2.7

    0.0

    -4.9

    -1.0

    How have loan covenants for small businesses changed?

    Past three months

    0.0

    0.0

    2.5

    5.2

    0.0

    -1.9

    Next three months

    -1.6

    1.7

    -2.0

    2.6

    0.0

    -1.9

    How have spreads on loans to medium PNFCs changed?

    Past three months

    -13.5

    -13.4

    -7.9

    -8.0

    -25.1

    -7.5

    Next three months

    0.0

    -2.2

    10.9

    20.0

    -8.5

    -7.1

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

    Past three months

    0.0

    -2.0

    -8.2

    16.9

    -7.5

    -4.2

    Next three months

    0.0

    -2.0

    4.5

    10.0

    -6.4

    0.0

    How have collateral requirements for loans to medium PNFCs changed?

    Past three months

    -3.1

    -0.9

    -1.4

    6.4

    -1.2

    -0.9

    Next three months

    -4.0

    -0.9

    -1.1

    -0.3

    -3.2

    -4.3

    How have maximum credit lines for medium PNFCs changed?

    Past three months

    -11.4

    0.0

    0.0

    6.5

    -9.7

    -2.7

    Next three months

    -11.4

    0.0

    3.4

    0.0

    -13.1

    0.0

    How have loan covenants for medium PNFCs changed?

    Past three months

    0.0

    0.0

    0.0

    4.5

    2.1

    -0.9

    Next three months

    0.1

    0.0

    -9.3

    2.1

    -0.9

    0.0

    How have spreads on loans to large PNFCs changed?

    Past three months

    3.3

    -5.2

    -8.0

    -46.5

    -10.9

    -6.7

    Next three months

    -3.2

    -7.7

    -38.9

    -9.4

    -1.3

    -18.4

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

    Past three months

    1.8

    -5.8

    -9.7

    -44.0

    -10.3

    -3.0

    Next three months

    7.1

    -8.3

    -22.7

    -13.3

    0.5

    -15.5

    How have collateral requirements for loans to large PNFCs changed?

    Past three months

    0.7

    0.0

    -2.4

    -5.2

    -1.1

    0.6

    Next three months

    -0.1

    0.0

    -2.5

    -1.7

    0.0

    0.9

    How have maximum credit lines for large PNFCs changed?

    Past three months

    -14.7

    -16.3

    0.9

    25.6

    5.2

    -0.5

    Next three months

    -14.5

    -16.3

    1.0

    3.1

    -10.8

    5.2

    How have loan covenants for large PNFCs changed?

    Past three months

    2.7

    -7.5

    0.0

    -17.0

    9.3

    -1.4

    Next three months

    -3.2

    -9.9

    -26.1

    -10.1

    -0.6

    0.9

    How have spreads on loans to OFCs changed?

    Past three months

    -9.5

    8.9

    15.3

    -14.3

    -14.4

    -0.3

    Next three months

    -9.5

    8.9

    -45.3

    -7.5

    5.2

    4.9

    How have fees/commissions on loans to OFCs changed?

    Past three months

    -9.5

    2.4

    1.3

    -11.8

    -1.4

    2.2

    Next three months

    -9.5

    2.4

    -12.2

    -8.2

    2.3

    2.2

    How have collateral requirements for loans to OFCs changed?

    Past three months

    -3.2

    0.0

    0.0

    -1.1

    -1.4

    0.0

    Next three months

    -4.1

    0.0

    -30.8

    0.6

    -1.4

    0.0

    How have maximum credit lines for OFCs changed?

    Past three months

    2.4

    0.0

    0.0

    3.5

    -3.7

    -2.2

    Next three months

    -0.9

    0.0

    -0.9

    4.8

    -2.3

    -2.2

    Footnotes

    • (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: 15 April 2021

ISSN 1755-8247

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