Credit Conditions Survey - 2023 Q1

This quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions.
Published on 13 April 2023

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; and
  • lending to non-financial corporations, small businesses, and to non-bank financial firms.

This report presents the results of the 2023 Q1 survey. Lenders were asked to report changes in the three months to end-February 2023 (Q1), relative to the period between September and November 2022 (Q4), and expected changes in the three months to end-May 2023 (Q2), relative to the period between December and February.

The survey was conducted between 27 February and 17 March 2023. Any impact on lenders’ expectations from developments occurring within this period may not be fully captured in the survey’s expected changes balances and any impact from more recent developments will not be captured at all.

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 2023 Q2 Credit Conditions Survey will be published on 13 July 2023.

Supply

  • Lenders reported that the availability of secured credit to households was unchanged in the three months to end-February 2023 (Q1). Lenders expected availability to decrease over the next three months to end-May 2023 (Q2) (Chart 1).
  • Lenders reported that the availability of unsecured credit to households decreased in Q1 but was expected to increase slightly in Q2 (Chart 2).
  • Lenders reported that the overall availability of credit to the corporate sector was unchanged in Q1, remaining unchanged for businesses of all sizes. Overall availability was expected to be unchanged in Q2.

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

The bars show the net percentage balance of responses from 2007 Q2 to 2023 Q1 and the diamond shows future expectations for 2023 Q2. The balance for 2023 Q1 was minus 39.8 and the expected balance for 2023 Q2 was 6.2.

Footnotes

  • (a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange 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 2023 Q1 and the diamond shows future expectations for 2023 Q2. The balance for 2023 Q1 was 4.7 and the expected balance for 2023 Q2 was minus 20.2.

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 decreased in Q1, but was expected to increase in Q2. Demand for secured lending for remortgaging decreased in Q1, but was expected to increase in Q2 (Chart 3).
  • Lenders reported that overall demand for unsecured lending decreased slightly in Q1, but was expected to increase slightly in Q2. Within the overall figure, demand for credit card lending decreased slightly in Q1, but was expected to increase slightly in Q2. Demand for other unsecured lending was reported to have increased slightly, and was expected to increase further in Q2 (Chart 4).
  • Lenders reported that demand for corporate lending from small and large-sized businesses slightly decreased in Q1, and demand from medium-sized businesses decreased (Chart 5). Demand for corporate lending from businesses of all sizes was expected to be unchanged in Q2.

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

The bars show the net percentage balance of responses from 2018 Q1 to 2023 Q1 and the diamonds show future expectations for 2023 Q2. The balance for house purchases for 2023 Q1 was minus 30.8 and the expected balance for 2023 Q2 was 35.3. The balance for remortgaging for 2023 Q1 was minus 38.6 and the expected balance for 2023 Q2 was 48.8.

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 2018 Q1 to 2023 Q1 and the diamonds show future expectations for 2023 Q2. The balance for credit cards for 2023 Q1 was minus 8.9 and the expected balance for 2023 Q2 was 6.8. The balance for other unsecured for 2023 Q1 was 6.2 and the expected balance for 2023 Q2 was 11.8.

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)

The bars show the net percentage balance of responses from 2019 Q1 to 2023 Q1 and the diamonds show future expectations for 2023 Q2. The balance for small businesses for 2023 Q1 was minus 9.6 and the expected balance for 2023 Q2 was minus 1. The balance for medium-sized businesses for 2023 Q1 was minus 32.5 and the expected balance for 2023 Q2 was minus 3.9. The balance for large businesses for 2023 Q1 was minus 9.6 and the expected balance for 2023 Q2 was minus 4.

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 demand.

Loan pricing

  • Lenders reported that overall spreads on secured lending to households - relative to Bank Rate or the appropriate swap rate – narrowed in Q1, and were expected to narrow further in Q2.
  • Lenders reported that overall unsecured lending spreads narrowed in Q1, and were expected to narrow further in Q2. Lenders also reported that the length of interest-free periods on credit cards for both balance transfers and purchases decreased in Q1, and were expected to decrease further in Q2.
  • Lenders reported that spreads on corporate lending to small businesses was unchanged in Q1, but had slightly narrowed for medium-sized businesses, and widened for large businesses. Spreads on lending to small businesses were expected to narrow slightly over the next three months, while for medium and large firms they were expected to be unchanged and widen slightly, respectively.

Defaults

  • Lenders reported that default rates on secured loans to households increased in Q1, and were expected to increase further in Q2. Losses given default on secured loans increased in Q1, and were expected to increase further in Q2.
  • Lenders reported that default rates for total unsecured lending increased in Q1, and was expected to increase further in Q2. Within this, defaults on both credit cards and other unsecured loans increased in Q1 and were expected to increase further in Q2.
  • Lenders reported that default rates on loans to both small and medium-sized corporates increased in Q1 and was expected to increase further in Q2. Default rates on loans to large businesses was unchanged in Q1 and was expected to remain unchanged in Q2 (Chart 6). Losses given default was unchanged for small businesses, but slightly increased for medium and large businesses in Q1. Losses given default on loans to small and large corporates were expected to remain unchanged in Q2, and to increase slightly for medium-sized businesses.

Chart 6: Net percentage balance for changes in default rates on loans to firms by size (a) (b) (c)

The bars show the net percentage balance of responses from 2019 Q1 to 2023 Q1 and the diamonds show future expectations for 2023 Q2. The balance for small businesses for 2023 Q1 was 11.6 and the expected balance for 2023 Q2 was 21.2. The balance for medium-sized businesses for 2023 Q1 was 12.9 and the expected balance for 2023 Q2 was 19.5. The balance for large businesses for 2023 Q1 was 0.7 and the expected balance for 2023 Q2 was 2.8.

Footnotes

  • (a) See footnote (a) to Chart 1.
  • (b) Question: ‘How has the default rate on loans to small/medium/large private non-financial corporations (PNFCs) changed?’.
  • (c) A positive balance indicates an increase in the default rate.

How to interpret this survey

This report presents the results of the 2023 Q1 survey. It was conducted between 27 February and 17 March 2023. 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/decrease’ 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)

    2021

    2022

    2023

    Q4

    Q1

    Q2

    Q3

    Q4

    Q1

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

    Past three months

    23.1

    -2.7

    -22.0

    -13.3

    -33.6

    4.7

    Next three months

    15.1

    -22.3

    -5.1

    -40.9

    -24.1

    -20.2

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    20.2

    -18.0

    -34.5

    -14.3

    -44.8

    -14.2

    Next three months

    13.3

    -19.3

    -37.6

    -28.0

    -55.1

    -19.7

    market share objectives

    Past three months

    5.9

    6.1

    2.6

    12.6

    2.8

    -1.6

    Next three months

    0.3

    -5.0

    3.5

    6.8

    -1.3

    -11.0

    changing appetite for risk

    Past three months

    13.9

    5.6

    -5.3

    5.2

    -15.1

    -6.5

    Next three months

    18.9

    -7.4

    -9.2

    -11.0

    -27.6

    -14.3

    tight wholesale funding conditions

    Past three months

    0.0

    2.4

    -7.7

    -8.4

    -35.8

    -25.2

    Next three months

    -1.7

    -8.0

    -1.8

    -8.4

    4.3

    -8.8

    expectations for house prices

    Past three months

    23.0

    11.7

    -0.1

    1.7

    -15.4

    -24.0

    Next three months

    6.4

    -0.6

    -9.1

    -27.2

    -42.3

    -13.7

    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

    19.5

    4.4

    -4.4

    -14.9

    -30.7

    3.2

    Next three months

    4.6

    -17.2

    -5.0

    -39.3

    -24.9

    -5.6

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

    Past three months

    23.5

    14.0

    -4.0

    -12.3

    -45.4

    0.3

    Next three months

    24.7

    -5.8

    -5.9

    -44.1

    -37.3

    -28.9

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

    Past three months

    19.8

    9.6

    0.9

    0.8

    -16.5

    -7.4

    Next three months

    30.7

    10.8

    -0.9

    -1.5

    -31.1

    -3.0

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

    Past three months

    27.3

    7.4

    4.9

    -11.5

    -32.4

    -14.2

    Next three months

    12.5

    14.0

    3.9

    -25.1

    -24.7

    -13.9

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

    Past three months

    12.5

    12.5

    -5.3

    -5.8

    -26.0

    2.2

    Next three months

    -6.2

    2.4

    0.3

    -12.3

    -17.1

    5.5

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

    Past three months

    11.9

    -2.6

    -0.8

    -13.6

    -18.9

    14.6

    Next three months

    6.7

    0.3

    -4.2

    -0.5

    0.4

    -8.4

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

    Past three months

    -11.1

    -21.9

    -7.6

    7.0

    -1.4

    14.0

    Next three months

    13.9

    18.0

    37.0

    29.1

    44.3

    36.1

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

    Past three months

    -8.7

    -31.7

    -25.1

    -0.1

    3.1

    12.6

    Next three months

    -3.8

    -1.2

    0.6

    -2.3

    24.6

    19.1

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

    Past three months

    -34.8

    6.0

    30.4

    -36.5

    -75.4

    -30.8

    Next three months

    -28.7

    17.3

    -41.9

    -37.2

    -14.5

    35.3

    of which: demand for prime lending

    Past three months

    -34.2

    3.6

    28.8

    -36.5

    -67.7

    -30.8

    Next three months

    -28.7

    11.8

    -41.9

    -37.2

    -14.5

    35.3

    of which: demand for buy-to-let lending

    Past three months

    26.9

    11.3

    5.9

    8.0

    -62.5

    -43.4

    Next three months

    -13.4

    18.9

    -26.7

    -16.1

    1.9

    36.7

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

    Past three months

    70.4

    14.9

    -6.3

    10.5

    -17.4

    -38.6

    Next three months

    -7.2

    11.1

    4.4

    23.0

    5.6

    48.8

    How have overall secured lending spreads changed?

    Past three months

    87.9

    88.3

    9.6

    -7.6

    -19.0

    26.5

    Next three months

    2.1

    0.0

    -24.1

    -9.1

    -8.4

    23.9

    of which: spreads on prime lending

    Past three months

    93.8

    88.3

    7.9

    3.4

    -44.5

    7.8

    Next three months

    3.7

    1.6

    -24.1

    -9.1

    12.0

    14.5

    of which: spreads on buy-to-let lending

    Past three months

    79.4

    90.1

    17.8

    5.9

    -15.9

    5.8

    Next three months

    18.0

    1.7

    -24.1

    -15.2

    7.4

    13.8

    How have fees on secured lending changed?

    Past three months

    3.2

    3.3

    -1.6

    -12.2

    0.0

    4.1

    Next three months

    7.4

    0.0

    0.0

    -7.8

    0.0

    0.0

    How have maximum loan to value ratios changed?

    Past three months

    5.2

    -5.3

    1.6

    0.0

    2.7

    -14.4

    Next three months

    2.0

    0.0

    1.6

    -8.2

    -26.4

    -9.4

    How have maximum loan to income ratios changed?

    Past three months

    19.5

    7.8

    1.6

    -1.5

    -0.9

    0.9

    Next three months

    22.9

    0.0

    1.6

    1.0

    -1.8

    -1.6

    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)

    2021

    2022

    2023

    Q4

    Q1

    Q2

    Q3

    Q4

    Q1

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

    Past three months

    44.7

    31.1

    6.3

    -8.2

    -36.2

    -39.8

    Next three months

    21.2

    29.7

    -30.2

    -17.2

    -50.2

    6.2

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    39.5

    24.6

    0.7

    -16.6

    -19.0

    -12.5

    Next three months

    20.2

    14.3

    -7.0

    -14.3

    -37.6

    13.6

    market share objectives

    Past three months

    23.7

    24.3

    8.5

    -0.4

    -0.4

    0.3

    Next three months

    22.4

    26.8

    2.1

    0.8

    -0.4

    7.7

    changing appetite for risk

    Past three months

    11.8

    5.2

    0.2

    -1.5

    -3.8

    -17.5

    Next three months

    4.4

    9.6

    -3.3

    -1.3

    -12.8

    0.7

    changing cost/availability of funds

    Past three months

    -0.4

    7.8

    -12.5

    -17.0

    -16.3

    -11.0

    Next three months

    -0.3

    6.7

    -12.1

    -21.6

    0.6

    4.1

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

    Past three months

    37.6

    15.3

    12.4

    -5.2

    -20.9

    -23.6

    Next three months

    36.5

    17.7

    -4.6

    -7.3

    -34.2

    5.6

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

    Past three months

    36.9

    22.6

    10.9

    -21.9

    -22.3

    -30.1

    Next three months

    21.6

    9.8

    -22.0

    -15.4

    -27.6

    -6.4

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

    Past three months

    37.5

    16.4

    12.2

    -7.6

    -21.1

    -24.5

    Next three months

    34.5

    16.5

    -7.0

    -8.4

    -33.3

    4.0

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

    Past three months

    14.5

    23.2

    30.8

    -11.1

    17.3

    -33.6

    Next three months

    25.9

    17.4

    -18.6

    1.0

    -44.2

    12.2

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

    Past three months

    23.9

    16.6

    10.7

    -19.7

    -17.1

    -14.7

    Next three months

    20.5

    9.9

    -33.3

    -24.0

    -25.1

    4.9

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

    Past three months

    15.8

    22.2

    28.0

    -12.3

    12.4

    -30.9

    Next three months

    25.1

    16.3

    -20.7

    -2.5

    -41.5

    11.2

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

    Past three months

    -9.3

    -26.9

    -11.5

    -4.1

    -4.6

    -5.2

    Next three months

    -16.3

    -6.8

    1.2

    1.1

    -13.3

    14.6

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

    Past three months

    -25.9

    -12.4

    -13.0

    -1.0

    -9.0

    12.7

    Next three months

    -23.7

    -12.8

    11.9

    -3.8

    -16.0

    4.0

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

    Past three months

    -11.6

    -24.6

    -11.7

    -3.6

    -5.2

    -2.7

    Next three months

    -17.3

    -7.7

    2.7

    0.4

    -13.7

    13.1

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

    Past three months

    -1.7

    -4.6

    9.8

    4.8

    20.3

    27.2

    Next three months

    7.1

    17.1

    23.3

    35.2

    29.2

    32.8

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

    Past three months

    -22.5

    -9.8

    6.8

    -6.3

    17.0

    15.8

    Next three months

    5.5

    28.1

    27.1

    28.8

    37.3

    19.0

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

    Past three months

    -4.5

    -5.4

    9.3

    3.3

    19.9

    25.6

    Next three months

    6.9

    18.8

    23.8

    34.3

    30.3

    30.9

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

    Past three months

    -30.6

    1.6

    -5.6

    -19.7

    0.0

    13.6

    Next three months

    0.0

    0.0

    -5.5

    -11.1

    6.2

    0.0

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

    Past three months

    -20.1

    -5.8

    -8.9

    -6.3

    2.7

    1.8

    Next three months

    3.6

    0.0

    0.0

    -6.5

    -9.1

    0.0

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

    Past three months

    -29.1

    0.5

    -6.1

    -17.8

    0.4

    12.0

    Next three months

    0.5

    0.0

    -4.8

    -10.4

    4.0

    0.0

    How has demand for credit card lending from households changed?

    Past three months

    41.2

    40.7

    33.2

    1.2

    -19.3

    -8.9

    Next three months

    11.4

    17.4

    6.0

    8.3

    -7.2

    6.8

    How has demand for other unsecured lending from households changed?

    Past three months

    13.2

    16.8

    27.3

    22.1

    -43.8

    6.2

    Next three months

    1.3

    24.4

    -5.4

    -18.6

    -18.4

    11.8

    How has demand for total unsecured lending from households changed?

    Past three months

    37.4

    37.0

    32.4

    4.2

    -22.8

    -6.8

    Next three months

    10.0

    18.5

    4.4

    4.5

    -8.8

    7.5

    How have spreads on credit cards changed?

    Past three months

    -4.3

    -14.5

    2.2

    -1.2

    12.3

    12.8

    Next three months

    18.4

    4.7

    -12.1

    8.4

    5.1

    15.1

    How have spreads on other unsecured lending products changed?

    Past three months

    21.0

    1.4

    36.5

    23.2

    31.4

    -3.7

    Next three months

    -1.7

    8.0

    10.4

    0.8

    2.8

    21.1

    How have overall unsecured lending spreads changed?

    Past three months

    -1.0

    -12.1

    6.8

    2.2

    15.0

    10.7

    Next three months

    15.8

    5.2

    -9.1

    7.3

    4.8

    15.9

    How have credit card limits changed?

    Past three months

    -11.5

    1.9

    -5.8

    6.5

    12.2

    -1.1

    Next three months

    -5.1

    -10.0

    4.7

    0.0

    -21.2

    8.1

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

    Past three months

    0.0

    4.7

    1.5

    1.4

    10.5

    4.4

    Next three months

    0.0

    0.0

    0.0

    7.6

    1.5

    1.5

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

    Length of interest free period on balance transfers

    Past three months

    35.9

    42.9

    24.3

    -4.2

    -22.2

    -25.7

    Next three months

    43.3

    16.1

    8.5

    0.0

    -20.3

    -25.7

    Length of interest free period for purchases

    Past three months

    23.8

    27.8

    12.8

    -12.1

    -20.9

    -34.3

    Next three months

    16.7

    16.1

    5.7

    -13.6

    -19.1

    -25.7

    How have maximum maturities on loans changed? (d)

    Past three months

    4.9

    8.7

    2.9

    2.7

    0.0

    0.0

    Next three months

    4.9

    3.2

    2.9

    0.0

    -5.7

    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)

    2021

    2022

    2023

    Q4

    Q1

    Q2

    Q3

    Q4

    Q1

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

    Past three months

    3.5

    0.8

    0.9

    0.3

    -0.7

    0.1

    Next three months

    2.8

    -1.3

    -2.5

    -8.3

    -5.0

    -2.6

    of which: commercial real estate sector

    Past three months

    -4.3

    25.1

    9.9

    -1.5

    -6.2

    -1.7

    Next three months

    11.9

    14.4

    8.6

    -8.7

    -7.4

    -6.4

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

    Past three months

    28.1

    13.2

    9.8

    -1.5

    -29.6

    -28.0

    Next three months

    23.4

    7.7

    -2.1

    -24.9

    -28.6

    -10.5

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    4.3

    6.4

    1.5

    -2.3

    1.7

    2.2

    Next three months

    9.4

    11.3

    2.0

    -7.8

    2.7

    -7.9

    changing sector-specific risks

    Past three months

    3.0

    0.8

    2.6

    -3.7

    -8.3

    5.8

    Next three months

    7.4

    6.8

    2.3

    -11.1

    2.4

    -1.2

    market share objectives

    Past three months

    3.6

    1.6

    2.8

    0.0

    0.0

    0.0

    Next three months

    2.6

    -0.7

    2.8

    0.0

    0.0

    -2.3

    market pressures from capital markets

    Past three months

    0.0

    1.6

    1.0

    -1.4

    -1.6

    0.0

    Next three months

    0.0

    9.0

    0.3

    -1.4

    -1.6

    -1.8

    changing appetite for risk

    Past three months

    3.0

    0.8

    1.8

    2.6

    1.5

    1.5

    Next three months

    1.5

    -1.5

    1.4

    2.3

    -2.8

    -4.4

    tight wholesale funding conditions

    Past three months

    0.0

    0.1

    0.9

    -4.1

    0.0

    -6.7

    Next three months

    0.0

    5.8

    0.0

    -0.9

    0.0

    2.9

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

    Past three months

    -2.1

    -2.0

    0.6

    -2.1

    -3.1

    -0.9

    Next three months

    -2.1

    1.4

    1.0

    -10.9

    -5.5

    7.5

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

    Past three months

    -1.8

    -1.7

    -0.7

    -1.8

    -12.0

    -0.8

    Next three months

    -1.8

    5.7

    -4.2

    -9.4

    -4.8

    -2.7

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

    Past three months

    4.7

    2.7

    0.0

    -4.7

    -1.8

    -0.7

    Next three months

    3.0

    10.4

    -2.9

    -12.8

    -0.9

    -0.1

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

    Past three months

    1.6

    -4.2

    -13.7

    -1.0

    -15.3

    -12.0

    Next three months

    0.0

    0.0

    -0.8

    -1.2

    -9.1

    7.5

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

    Past three months

    -0.9

    -1.7

    0.1

    -0.8

    -3.8

    -1.1

    Next three months

    1.9

    1.9

    1.1

    0.9

    -16.7

    -0.5

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

    Past three months

    3.2

    3.5

    0.9

    -0.8

    -2.5

    -0.8

    Next three months

    1.6

    3.5

    -1.8

    -2.7

    -2.5

    0.8

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

    Past three months

    1.8

    0.8

    2.8

    2.9

    -3.1

    -1.0

    Next three months

    0.0

    1.6

    0.0

    -0.8

    -2.2

    1.0

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

    Past three months

    0.0

    -1.7

    -0.8

    -1.9

    5.3

    0.0

    Next three months

    -0.8

    -1.7

    -1.1

    6.1

    6.2

    -2.6

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

    Past three months

    5.4

    3.5

    0.9

    0.0

    -6.0

    1.0

    Next three months

    1.0

    -0.8

    0.9

    -4.2

    -5.0

    0.1

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

    Past three months

    3.3

    19.4

    0.8

    0.9

    1.6

    10.2

    Next three months

    9.8

    13.7

    7.3

    3.0

    -1.1

    0.1

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

    Past three months

    17.9

    3.4

    9.3

    34.9

    11.2

    11.6

    Next three months

    35.0

    25.0

    24.7

    34.7

    33.9

    21.2

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

    Past three months

    -6.4

    3.3

    -2.1

    24.8

    7.9

    12.9

    Next three months

    20.7

    22.0

    22.5

    36.3

    17.1

    19.5

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

    Past three months

    -1.6

    -0.9

    4.1

    4.0

    -1.0

    0.7

    Next three months

    1.9

    7.7

    8.5

    27.3

    18.0

    2.8

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

    Past three months

    0.0

    0.0

    5.9

    6.1

    1.4

    2.3

    Next three months

    0.0

    5.3

    6.2

    16.8

    2.1

    2.3

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

    Past three months

    1.2

    -0.9

    5.1

    5.3

    1.2

    8.0

    Next three months

    0.0

    4.6

    5.4

    14.6

    6.0

    6.0

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

    Past three months

    0.0

    -0.9

    5.8

    4.0

    0.0

    5.6

    Next three months

    0.0

    3.3

    4.1

    13.0

    0.2

    0.0

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

    Past three months

    30.5

    -5.3

    0.0

    -11.4

    0.0

    -11.9

    Next three months

    -1.0

    22.4

    0.0

    0.0

    0.0

    0.0

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

    Past three months

    -20.4

    3.8

    -2.8

    -7.1

    -11.7

    28.5

    Next three months

    -2.9

    7.4

    2.2

    0.0

    -12.8

    -14.3

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

    Past three months

    23.1

    -3.8

    -0.4

    -10.8

    -1.8

    -5.9

    Next three months

    -1.3

    19.8

    0.3

    0.0

    -1.9

    -2.1

    How has demand for secured lending from small businesses changed?

    Past three months

    -19.2

    1.4

    0.2

    -5.4

    -14.2

    -30.5

    Next three months

    -4.5

    8.5

    -19.4

    -23.2

    -21.6

    7.6

    How has overall demand for lending from small businesses changed?

    Past three months

    -13.1

    -2.0

    -2.0

    -6.4

    -17.1

    -9.6

    Next three months

    7.3

    11.4

    -9.4

    5.1

    -3.5

    -1.0

    How has demand for lending from medium PNFCs changed?

    Past three months

    -1.7

    -1.7

    -0.9

    -4.8

    -12.9

    -32.5

    Next three months

    -0.8

    10.5

    -15.0

    -1.8

    -19.5

    -3.9

    How has demand for lending from large PNFCs changed?

    Past three months

    9.5

    2.9

    3.2

    -6.1

    -0.6

    -9.6

    Next three months

    1.8

    17.2

    -7.7

    -3.4

    -17.6

    -4.0

    How has demand for lending from OFCs changed?

    Past three months

    0.0

    -1.3

    -5.0

    10.1

    7.0

    6.3

    Next three months

    8.0

    0.1

    1.0

    6.1

    5.2

    3.2

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

    mergers and acquisitions

    Past three months

    15.1

    -7.6

    3.7

    -24.5

    -17.9

    -8.9

    Next three months

    4.5

    6.6

    -13.7

    -15.0

    -6.6

    -2.8

    capital investment

    Past three months

    -6.1

    2.6

    -5.3

    -17.0

    -13.4

    -6.4

    Next three months

    1.6

    -3.1

    -5.4

    -10.2

    -14.9

    1.0

    inventory finance

    Past three months

    11.8

    14.0

    19.2

    19.6

    24.8

    -2.9

    Next three months

    17.5

    21.5

    13.3

    25.1

    18.4

    1.8

    balance sheet restructuring

    Past three months

    -1.5

    0.8

    -0.8

    -0.7

    -0.8

    -1.0

    Next three months

    0.0

    13.1

    0.9

    3.8

    -1.7

    3.0

    commercial real estate

    Past three months

    22.7

    31.2

    15.0

    0.3

    -34.1

    -17.3

    Next three months

    18.7

    15.9

    -8.9

    -11.2

    -33.3

    1.3

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

    Past three months

    0.0

    0.0

    -10.0

    1.2

    -12.1

    -4.6

    Next three months

    0.0

    -11.2

    0.0

    0.0

    0.0

    8.4

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

    Past three months

    -12.1

    0.0

    1.4

    0.0

    0.0

    1.3

    Next three months

    -12.1

    1.4

    0.0

    0.0

    0.0

    -1.3

    How have collateral requirements for loans to 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

    -4.6

    -4.5

    How have maximum credit lines for small businesses changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    -0.9

    -0.9

    Next three months

    0.0

    0.0

    0.0

    0.0

    -0.9

    0.0

    How have loan covenants for small businesses changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    0.2

    4.3

    Next three months

    0.0

    0.0

    0.0

    1.8

    0.0

    6.7

    How have spreads on loans to medium PNFCs changed?

    Past three months

    10.5

    -0.9

    0.9

    0.0

    -2.3

    5.9

    Next three months

    0.0

    4.7

    -10.2

    -6.5

    0.0

    -1.9

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

    Past three months

    10.5

    0.0

    0.0

    -1.0

    0.0

    1.1

    Next three months

    0.0

    0.0

    0.0

    -1.0

    0.0

    -1.1

    How have collateral requirements for loans to medium PNFCs 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

    -3.8

    -3.8

    How have maximum credit lines for medium PNFCs changed?

    Past three months

    0.0

    0.0

    -0.8

    0.0

    -0.8

    -0.8

    Next three months

    0.0

    0.0

    0.0

    -5.6

    -1.6

    0.0

    How have loan covenants for medium PNFCs changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    0.1

    1.9

    Next three months

    0.0

    0.0

    0.0

    1.2

    0.0

    3.0

    How have spreads on loans to large PNFCs changed?

    Past three months

    23.7

    4.2

    -19.3

    -22.3

    -27.8

    -20.5

    Next three months

    1.0

    -17.1

    -9.3

    -31.5

    -26.3

    -5.4

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

    Past three months

    23.7

    -6.1

    -16.6

    -14.3

    -27.6

    -11.0

    Next three months

    2.6

    -17.1

    -3.0

    -33.0

    -18.8

    -0.8

    How have collateral requirements for loans to large PNFCs changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    -1.8

    -7.6

    Next three months

    0.0

    -9.8

    0.0

    0.0

    -1.8

    -2.0

    How have maximum credit lines for large PNFCs changed?

    Past three months

    12.8

    3.5

    4.5

    0.0

    1.0

    9.7

    Next three months

    9.6

    2.2

    -0.8

    -8.9

    -8.8

    0.0

    How have loan covenants for large PNFCs changed?

    Past three months

    0.0

    -0.1

    0.0

    -9.0

    -2.8

    -3.7

    Next three months

    0.0

    -2.2

    0.0

    0.0

    -18.8

    2.1

    How have spreads on loans to OFCs changed?

    Past three months

    14.3

    0.0

    -1.4

    -11.5

    -20.6

    -23.8

    Next three months

    11.1

    -1.4

    -12.5

    -26.9

    -27.5

    -3.9

    How have fees/commissions on loans to OFCs changed?

    Past three months

    14.3

    0.0

    -1.4

    -11.5

    -22.6

    -21.7

    Next three months

    11.1

    -1.4

    -12.5

    -20.9

    -22.6

    2.2

    How have collateral requirements for loans to OFCs changed?

    Past three months

    0.0

    0.0

    -1.4

    0.0

    -2.0

    -2.2

    Next three months

    0.0

    0.0

    -1.4

    0.0

    -2.0

    -2.2

    How have maximum credit lines for OFCs changed?

    Past three months

    12.8

    0.0

    1.4

    0.9

    -0.8

    -12.7

    Next three months

    11.1

    -1.4

    1.4

    -10.9

    5.3

    -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: 13 July 2023

ISSN 1755-8247

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