Credit Conditions Survey - 2023 Q3

This quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions.
Published on 12 October 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 Q3 survey. Lenders were asked to report changes in the three months to end-August 2023 (Q3), relative to the period between March and May (Q2), and expected changes in the three months to end-November 2023 (Q4), relative to the period between June and August. The survey was conducted between 29 August and 15 September 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 Q4 Credit Conditions Survey will be published on 18 January 2024.

Supply

  • Lenders reported that the availability of secured credit to households decreased in the three months to end-August 2023 (Q3). It was expected to decrease slightly over the next three months to end-November 2023 (Q4) (Chart 1).
  • Lenders reported that the availability of unsecured credit to households decreased in Q3 and was expected to be unchanged in Q4 (Chart 2).
  • Lenders reported that the overall availability of credit to the corporate sector was unchanged in Q3. Small business availability slightly increased while availability of credit to medium and large businesses remained unchanged in Q3. Overall availability was expected to be unchanged in Q4.

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

The bars show the net percentage balance of responses from 2007 Q2 to 2023 Q3 and the diamond shows future expectations for 2023 Q4. The balance for 2023 Q3 was minus 11.4 and the expected balance for 2023 Q4 was minus 0.4.

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 Q3 and the diamond shows future expectations for 2023 Q4. The balance for 2023 Q3 was minus 20.2 and the expected balance for 2023 Q4 was minus 5.8.

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 and remortgaging decreased in Q3, and was expected to decrease further in Q4 (Chart 3).
  • Lenders reported that overall demand for unsecured lending slightly increased in Q3, and was expected to increase in Q4. Within the overall figure, demand for credit card lending slightly increased in Q3, and was expected to increase in Q4. Demand for other unsecured lending was unchanged in Q3, and was expected to increase in Q4 (Chart 4).
  • Lenders reported that demand for corporate lending from small businesses remained unchanged, demand from medium-sized businesses slightly decreased and demand from large firms decreased in Q3 (Chart 5). Demand for corporate lending in Q4 was expected to decrease slightly for small and medium-sized businesses, and expected to be unchanged for large businesses.

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 Q3 and the diamonds show future expectations for 2023 Q4. The balance for house purchases for 2023 Q3 was minus 54.9 and the expected balance for 2023 Q4 was minus 28.4. The balance for remortgaging for 2023 Q3 was minus 22.8 and the expected balance for 2023 Q4 was minus 11.7.

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 Q3 and the diamonds show future expectations for 2023 Q4. The balance for credit cards for 2023 Q3 was 9.8 and the expected balance for 2023 Q4 was 16.2. The balance for other unsecured for 2023 Q3 was minus 0.3 and the expected balance for 2023 Q4 was 15.6.

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 Q3 and the diamonds show future expectations for 2023 Q4. The balance for small businesses for 2023 Q3 was minus 0.1 and the expected balance for 2023 Q4 was minus 9.3. The balance for medium-sized businesses for 2023 Q3 was minus 8 and the expected balance for 2023 Q4 was minus 7.1. The balance for large businesses for 2023 Q3 was minus 14 and the expected balance for 2023 Q4 was minus 4.7.

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 Q3, and were expected to widen in Q4.
  • Lenders reported that overall unsecured lending spreads narrowed slightly in Q3, and were expected to be unchanged in Q4. Lenders also reported that the length of interest-free periods on credit cards for balance transfers and on new credit cards for purchases both decreased in Q3. Both were expected to decrease further in Q4.
  • Lenders reported that spreads on corporate lending to small businesses narrowed in Q3, and were unchanged for medium-sized and large businesses. Spreads on lending to businesses of all sizes were expected to be unchanged over the next three months.

Defaults

  • Lenders reported that default rates on secured loans to households increased (Chart 6), and losses given default increased slightly in Q3. Both were expected to increase in Q4.
  • Lenders reported that default rates for total unsecured lending were unchanged in Q3, and expected to increase in Q4. Within this, over the past three months default rates for credit cards slightly decreased and default rates for other loans increased. Default rates for credit cards and for other loans were both expected to increase in Q4.
  • Lenders reported that default rates on loans to corporates decreased for small businesses, and were unchanged for medium and large businesses in Q3. Default rates were expected to increase in Q4 for small businesses, increase slightly for medium-sized businesses, and were expected to be unchanged for large businesses. Losses given default were unchanged for businesses of all sizes in Q3.

Chart 6: Net percentage balance for changes in default rates on secured and total unsecured loans to households (a) (b) (c)

The bars show the net percentage balance of responses from 2018 Q1 to 2023 Q3 and the diamonds show future expectations for 2023 Q4. The balance for secured loans for 2023 Q3 was 43.3 and the expected balance for 2023 Q4 was 47.4. The balance for total unsecured loans for 2023 Q3 was minus 3.5 and the expected balance for 2023 Q4 was 27.9.

Footnotes

  • (a) See footnote (a) to Chart 1.
  • (b) Question: ‘How has the default rate on secured/total 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 2023 Q3 survey. It was conducted between 29 August and 15 September 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)

    2022

    2023

    Q2

    Q3

    Q4

    Q1

    Q2

    Q3

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

    Past three months

    -22.0

    -13.3

    -33.6

    4.7

    -31.4

    -20.2

    Next three months

    -5.1

    -40.9

    -24.1

    -20.2

    -18.8

    -5.8

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    -34.5

    -14.3

    -44.8

    -14.2

    -26.3

    -10.6

    Next three months

    -37.6

    -28.0

    -55.1

    -19.7

    -10.8

    -16.4

    market share objectives

    Past three months

    2.6

    12.6

    2.8

    -1.6

    0.0

    -7.0

    Next three months

    3.5

    6.8

    -1.3

    -11.0

    5.4

    10.6

    changing appetite for risk

    Past three months

    -5.3

    5.2

    -15.1

    -6.5

    0.0

    0.0

    Next three months

    -9.2

    -11.0

    -27.6

    -14.3

    1.2

    0.9

    tight wholesale funding conditions

    Past three months

    -7.7

    -8.4

    -35.8

    -25.2

    -18.5

    -15.7

    Next three months

    -1.8

    -8.4

    4.3

    -8.8

    -15.8

    -13.8

    expectations for house prices

    Past three months

    -0.1

    1.7

    -15.4

    -24.0

    -5.6

    -15.1

    Next three months

    -9.1

    -27.2

    -42.3

    -13.7

    -9.9

    -19.7

    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

    -4.4

    -14.9

    -30.7

    3.2

    -30.4

    -18.3

    Next three months

    -5.0

    -39.3

    -24.9

    -5.6

    -15.4

    -5.0

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

    Past three months

    -4.0

    -12.3

    -45.4

    0.3

    -29.8

    -29.7

    Next three months

    -5.9

    -44.1

    -37.3

    -28.9

    -11.1

    15.8

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

    Past three months

    0.9

    0.8

    -16.5

    -7.4

    7.4

    -6.9

    Next three months

    -0.9

    -1.5

    -31.1

    -3.0

    -0.3

    11.4

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

    Past three months

    4.9

    -11.5

    -32.4

    -14.2

    -8.7

    -24.9

    Next three months

    3.9

    -25.1

    -24.7

    -13.9

    -15.2

    -27.9

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

    Past three months

    -5.3

    -5.8

    -26.0

    2.2

    14.9

    -30.2

    Next three months

    0.3

    -12.3

    -17.1

    5.5

    7.4

    -7.4

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

    Past three months

    -0.8

    -13.6

    -18.9

    14.6

    -3.1

    8.8

    Next three months

    -4.2

    -0.5

    0.4

    -8.4

    -0.5

    5.8

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

    Past three months

    -7.6

    7.0

    -1.4

    14.0

    30.9

    43.3

    Next three months

    37.0

    29.1

    44.3

    36.1

    41.2

    47.4

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

    Past three months

    -25.1

    -0.1

    3.1

    12.6

    8.3

    8.5

    Next three months

    0.6

    -2.3

    24.6

    19.1

    28.0

    24.2

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

    Past three months

    30.4

    -36.5

    -75.4

    -30.8

    52.7

    -54.9

    Next three months

    -41.9

    -37.2

    -14.5

    35.3

    -30.1

    -28.4

    of which: demand for prime lending

    Past three months

    28.8

    -36.5

    -67.7

    -30.8

    53.6

    -54.0

    Next three months

    -41.9

    -37.2

    -14.5

    35.3

    -30.1

    -27.1

    of which: demand for buy-to-let lending

    Past three months

    5.9

    8.0

    -62.5

    -43.4

    33.3

    5.3

    Next three months

    -26.7

    -16.1

    1.9

    36.7

    -26.2

    -35.9

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

    Past three months

    -6.3

    10.5

    -17.4

    -38.6

    51.3

    -22.8

    Next three months

    4.4

    23.0

    5.6

    48.8

    -17.5

    -11.7

    How have overall secured lending spreads changed?

    Past three months

    9.6

    -7.6

    -19.0

    26.5

    63.9

    43.4

    Next three months

    -24.1

    -9.1

    -8.4

    23.9

    -20.4

    -26.6

    of which: spreads on prime lending

    Past three months

    7.9

    3.4

    -44.5

    7.8

    55.4

    30.3

    Next three months

    -24.1

    -9.1

    12.0

    14.5

    -13.4

    -21.2

    of which: spreads on buy-to-let lending

    Past three months

    17.8

    5.9

    -15.9

    5.8

    58.6

    39.2

    Next three months

    -24.1

    -15.2

    7.4

    13.8

    -20.4

    -16.9

    How have fees on secured lending changed?

    Past three months

    -1.6

    -12.2

    0.0

    4.1

    4.2

    0.0

    Next three months

    0.0

    -7.8

    0.0

    0.0

    0.0

    0.0

    How have maximum loan to value ratios changed?

    Past three months

    1.6

    0.0

    2.7

    -14.4

    -7.7

    2.0

    Next three months

    1.6

    -8.2

    -26.4

    -9.4

    1.2

    0.0

    How have maximum loan to income ratios changed?

    Past three months

    1.6

    -1.5

    -0.9

    0.9

    0.0

    -3.1

    Next three months

    1.6

    1.0

    -1.8

    -1.6

    1.2

    9.5

    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)

    2022

    2023

    Q2

    Q3

    Q4

    Q1

    Q2

    Q3

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

    Past three months

    6.3

    -8.2

    -36.2

    -39.8

    1.6

    -11.4

    Next three months

    -30.2

    -17.2

    -50.2

    6.2

    -6.9

    -0.4

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    0.7

    -16.6

    -19.0

    -12.5

    1.2

    14.6

    Next three months

    -7.0

    -14.3

    -37.6

    13.6

    8.2

    8.6

    market share objectives

    Past three months

    8.5

    -0.4

    -0.4

    0.3

    5.3

    -7.8

    Next three months

    2.1

    0.8

    -0.4

    7.7

    -5.1

    3.3

    changing appetite for risk

    Past three months

    0.2

    -1.5

    -3.8

    -17.5

    -2.2

    -1.6

    Next three months

    -3.3

    -1.3

    -12.8

    0.7

    11.1

    1.5

    changing cost/availability of funds

    Past three months

    -12.5

    -17.0

    -16.3

    -11.0

    -6.2

    -12.1

    Next three months

    -12.1

    -21.6

    0.6

    4.1

    -7.8

    -0.1

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

    Past three months

    12.4

    -5.2

    -20.9

    -23.6

    15.1

    12.1

    Next three months

    -4.6

    -7.3

    -34.2

    5.6

    6.1

    -3.0

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

    Past three months

    10.9

    -21.9

    -22.3

    -30.1

    -11.3

    -12.7

    Next three months

    -22.0

    -15.4

    -27.6

    -6.4

    7.2

    -10.3

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

    Past three months

    12.2

    -7.6

    -21.1

    -24.5

    11.4

    8.7

    Next three months

    -7.0

    -8.4

    -33.3

    4.0

    6.3

    -4.0

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

    Past three months

    30.8

    -11.1

    17.3

    -33.6

    22.4

    4.7

    Next three months

    -18.6

    1.0

    -44.2

    12.2

    17.0

    8.7

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

    Past three months

    10.7

    -19.7

    -17.1

    -14.7

    -6.8

    -15.4

    Next three months

    -33.3

    -24.0

    -25.1

    4.9

    0.5

    -9.2

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

    Past three months

    28.0

    -12.3

    12.4

    -30.9

    18.3

    2.0

    Next three months

    -20.7

    -2.5

    -41.5

    11.2

    14.7

    6.2

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

    Past three months

    -11.5

    -4.1

    -4.6

    -5.2

    6.8

    1.2

    Next three months

    1.2

    1.1

    -13.3

    14.6

    13.9

    7.8

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

    Past three months

    -13.0

    -1.0

    -9.0

    12.7

    10.8

    -6.9

    Next three months

    11.9

    -3.8

    -16.0

    4.0

    4.1

    -1.9

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

    Past three months

    -11.7

    -3.6

    -5.2

    -2.7

    7.4

    0.1

    Next three months

    2.7

    0.4

    -13.7

    13.1

    12.5

    6.5

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

    Past three months

    9.8

    4.8

    20.3

    27.2

    -1.5

    -7.6

    Next three months

    23.3

    35.2

    29.2

    32.8

    4.8

    28.6

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

    Past three months

    6.8

    -6.3

    17.0

    15.8

    11.2

    22.6

    Next three months

    27.1

    28.8

    37.3

    19.0

    19.2

    23.7

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

    Past three months

    9.3

    3.3

    19.9

    25.6

    0.2

    -3.5

    Next three months

    23.8

    34.3

    30.3

    30.9

    6.8

    27.9

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

    Past three months

    -5.6

    -19.7

    0.0

    13.6

    1.5

    1.5

    Next three months

    -5.5

    -11.1

    6.2

    0.0

    -4.3

    1.5

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

    Past three months

    -8.9

    -6.3

    2.7

    1.8

    1.2

    7.5

    Next three months

    0.0

    -6.5

    -9.1

    0.0

    0.0

    0.0

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

    Past three months

    -6.1

    -17.8

    0.4

    12.0

    1.5

    2.3

    Next three months

    -4.8

    -10.4

    4.0

    0.0

    -3.7

    1.3

    How has demand for credit card lending from households changed?

    Past three months

    33.2

    1.2

    -19.3

    -8.9

    24.8

    9.8

    Next three months

    6.0

    8.3

    -7.2

    6.8

    10.6

    16.2

    How has demand for other unsecured lending from households changed?

    Past three months

    27.3

    22.1

    -43.8

    6.2

    33.5

    -0.3

    Next three months

    -5.4

    -18.6

    -18.4

    11.8

    3.9

    15.6

    How has demand for total unsecured lending from households changed?

    Past three months

    32.4

    4.2

    -22.8

    -6.8

    26.0

    8.4

    Next three months

    4.4

    4.5

    -8.8

    7.5

    9.6

    16.1

    How have spreads on credit cards changed?

    Past three months

    2.2

    -1.2

    12.3

    12.8

    0.9

    4.3

    Next three months

    -12.1

    8.4

    5.1

    15.1

    4.2

    -2.6

    How have spreads on other unsecured lending products changed?

    Past three months

    36.5

    23.2

    31.4

    -3.7

    8.2

    29.2

    Next three months

    10.4

    0.8

    2.8

    21.1

    17.9

    4.0

    How have overall unsecured lending spreads changed?

    Past three months

    6.8

    2.2

    15.0

    10.7

    1.8

    7.3

    Next three months

    -9.1

    7.3

    4.8

    15.9

    6.0

    -1.8

    How have credit card limits changed?

    Past three months

    -5.8

    6.5

    12.2

    -1.1

    5.8

    8.4

    Next three months

    4.7

    0.0

    -21.2

    8.1

    -10.7

    -1.5

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

    Past three months

    1.5

    1.4

    10.5

    4.4

    -3.0

    -1.5

    Next three months

    0.0

    7.6

    1.5

    1.5

    0.0

    -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

    24.3

    -4.2

    -22.2

    -25.7

    -0.6

    -28.4

    Next three months

    8.5

    0.0

    -20.3

    -25.7

    -13.7

    -23.7

    Length of interest free period for purchases

    Past three months

    12.8

    -12.1

    -20.9

    -34.3

    -9.3

    -25.5

    Next three months

    5.7

    -13.6

    -19.1

    -25.7

    -15.2

    -15.3

    How have maximum maturities on loans changed? (d)

    Past three months

    2.9

    2.7

    0.0

    0.0

    0.0

    4.4

    Next three months

    2.9

    0.0

    -5.7

    0.0

    17.4

    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)

    2022

    2023

    Q2

    Q3

    Q4

    Q1

    Q2

    Q3

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

    Past three months

    0.9

    0.3

    -0.7

    0.1

    -4.8

    -0.8

    Next three months

    -2.5

    -8.3

    -5.0

    -2.6

    -0.8

    2.2

    of which: commercial real estate sector

    Past three months

    9.9

    -1.5

    -6.2

    -1.7

    -10.2

    -14.9

    Next three months

    8.6

    -8.7

    -7.4

    -6.4

    -8.5

    -10.7

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

    Past three months

    9.8

    -1.5

    -29.6

    -28.0

    -29.1

    -25.9

    Next three months

    -2.1

    -24.9

    -28.6

    -10.5

    -14.3

    -13.1

    Factors contributing to changes in credit availability: (b)

    changing economic outlook

    Past three months

    1.5

    -2.3

    1.7

    2.2

    4.3

    4.5

    Next three months

    2.0

    -7.8

    2.7

    -7.9

    4.8

    4.1

    changing sector-specific risks

    Past three months

    2.6

    -3.7

    -8.3

    5.8

    7.9

    0.8

    Next three months

    2.3

    -11.1

    2.4

    -1.2

    11.0

    -0.1

    market share objectives

    Past three months

    2.8

    0.0

    0.0

    0.0

    0.0

    0.0

    Next three months

    2.8

    0.0

    0.0

    -2.3

    0.0

    0.9

    market pressures from capital markets

    Past three months

    1.0

    -1.4

    -1.6

    0.0

    0.0

    0.9

    Next three months

    0.3

    -1.4

    -1.6

    -1.8

    0.0

    0.8

    changing appetite for risk

    Past three months

    1.8

    2.6

    1.5

    1.5

    -1.0

    2.4

    Next three months

    1.4

    2.3

    -2.8

    -4.4

    0.7

    3.1

    tight wholesale funding conditions

    Past three months

    0.9

    -4.1

    0.0

    -6.7

    -5.9

    0.0

    Next three months

    0.0

    -0.9

    0.0

    2.9

    -2.1

    -2.1

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

    Past three months

    0.6

    -2.1

    -3.1

    -0.9

    5.3

    9.6

    Next three months

    1.0

    -10.9

    -5.5

    7.5

    10.6

    3.3

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

    Past three months

    -0.7

    -1.8

    -12.0

    -0.8

    -4.6

    -0.8

    Next three months

    -4.2

    -9.4

    -4.8

    -2.7

    0.0

    3.7

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

    Past three months

    0.0

    -4.7

    -1.8

    -0.7

    -1.6

    0.9

    Next three months

    -2.9

    -12.8

    -0.9

    -0.1

    -0.9

    1.7

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

    Past three months

    -13.7

    -1.0

    -15.3

    -12.0

    11.1

    7.3

    Next three months

    -0.8

    -1.2

    -9.1

    7.5

    8.2

    4.3

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

    Past three months

    0.1

    -0.8

    -3.8

    -1.1

    9.2

    -0.7

    Next three months

    1.1

    0.9

    -16.7

    -0.5

    0.0

    3.5

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

    Past three months

    0.9

    -0.8

    -2.5

    -0.8

    -1.6

    -1.8

    Next three months

    -1.8

    -2.7

    -2.5

    0.8

    -0.9

    0.0

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

    Past three months

    2.8

    2.9

    -3.1

    -1.0

    4.0

    1.2

    Next three months

    0.0

    -0.8

    -2.2

    1.0

    1.5

    2.0

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

    Past three months

    -0.8

    -1.9

    5.3

    0.0

    -0.7

    0.0

    Next three months

    -1.1

    6.1

    6.2

    -2.6

    2.0

    0.0

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

    Past three months

    0.9

    0.0

    -6.0

    1.0

    0.0

    0.0

    Next three months

    0.9

    -4.2

    -5.0

    0.1

    -0.9

    -0.9

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

    Past three months

    0.8

    0.9

    1.6

    10.2

    0.7

    -7.6

    Next three months

    7.3

    3.0

    -1.1

    0.1

    -3.5

    -2.4

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

    Past three months

    9.3

    34.9

    11.2

    11.6

    -3.9

    -15.6

    Next three months

    24.7

    34.7

    33.9

    21.2

    19.3

    10.6

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

    Past three months

    -2.1

    24.8

    7.9

    12.9

    3.9

    1.3

    Next three months

    22.5

    36.3

    17.1

    19.5

    3.2

    5.1

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

    Past three months

    4.1

    4.0

    -1.0

    0.7

    -0.9

    1.6

    Next three months

    8.5

    27.3

    18.0

    2.8

    2.6

    0.0

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

    Past three months

    5.9

    6.1

    1.4

    2.3

    0.0

    0.9

    Next three months

    6.2

    16.8

    2.1

    2.3

    0.0

    0.9

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

    Past three months

    5.1

    5.3

    1.2

    8.0

    4.0

    0.8

    Next three months

    5.4

    14.6

    6.0

    6.0

    0.0

    0.0

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

    Past three months

    5.8

    4.0

    0.0

    5.6

    0.0

    0.0

    Next three months

    4.1

    13.0

    0.2

    0.0

    0.0

    0.0

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

    Past three months

    0.0

    -11.4

    0.0

    -11.9

    -12.2

    12.6

    Next three months

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

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

    Past three months

    -2.8

    -7.1

    -11.7

    28.5

    0.0

    -4.4

    Next three months

    2.2

    0.0

    -12.8

    -14.3

    15.2

    4.4

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

    Past three months

    -0.4

    -10.8

    -1.8

    -5.9

    -10.5

    10.1

    Next three months

    0.3

    0.0

    -1.9

    -2.1

    2.2

    0.6

    How has demand for secured lending from small businesses changed?

    Past three months

    0.2

    -5.4

    -14.2

    -30.5

    7.5

    -6.8

    Next three months

    -19.4

    -23.2

    -21.6

    7.6

    -12.6

    3.4

    How has overall demand for lending from small businesses changed?

    Past three months

    -2.0

    -6.4

    -17.1

    -9.6

    5.5

    -0.1

    Next three months

    -9.4

    5.1

    -3.5

    -1.0

    -3.8

    -9.3

    How has demand for lending from medium PNFCs changed?

    Past three months

    -0.9

    -4.8

    -12.9

    -32.5

    2.9

    -8.0

    Next three months

    -15.0

    -1.8

    -19.5

    -3.9

    -4.1

    -7.1

    How has demand for lending from large PNFCs changed?

    Past three months

    3.2

    -6.1

    -0.6

    -9.6

    -9.4

    -14.0

    Next three months

    -7.7

    -3.4

    -17.6

    -4.0

    -4.0

    -4.7

    How has demand for lending from OFCs changed?

    Past three months

    -5.0

    10.1

    7.0

    6.3

    -1.9

    2.5

    Next three months

    1.0

    6.1

    5.2

    3.2

    0.0

    0.0

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

    mergers and acquisitions

    Past three months

    3.7

    -24.5

    -17.9

    -8.9

    -24.3

    -7.6

    Next three months

    -13.7

    -15.0

    -6.6

    -2.8

    -10.2

    1.1

    capital investment

    Past three months

    -5.3

    -17.0

    -13.4

    -6.4

    -8.5

    -5.4

    Next three months

    -5.4

    -10.2

    -14.9

    1.0

    -6.9

    -2.5

    inventory finance

    Past three months

    19.2

    19.6

    24.8

    -2.9

    -0.7

    -14.8

    Next three months

    13.3

    25.1

    18.4

    1.8

    -3.8

    -1.7

    balance sheet restructuring

    Past three months

    -0.8

    -0.7

    -0.8

    -1.0

    -6.6

    -3.1

    Next three months

    0.9

    3.8

    -1.7

    3.0

    -4.4

    2.6

    commercial real estate

    Past three months

    15.0

    0.3

    -34.1

    -17.3

    -30.3

    -39.2

    Next three months

    -8.9

    -11.2

    -33.3

    1.3

    -21.3

    -22.2

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

    Past three months

    -10.0

    1.2

    -12.1

    -4.6

    10.6

    12.0

    Next three months

    0.0

    0.0

    0.0

    8.4

    10.6

    -1.5

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

    Past three months

    1.4

    0.0

    0.0

    1.3

    0.0

    0.0

    Next three months

    0.0

    0.0

    0.0

    -1.3

    0.0

    0.0

    How have collateral requirements for loans to small businesses changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    -4.4

    10.5

    Next three months

    0.0

    0.0

    -4.6

    -4.5

    10.6

    13.5

    How have maximum credit lines for small businesses changed?

    Past three months

    0.0

    0.0

    -0.9

    -0.9

    -0.9

    0.0

    Next three months

    0.0

    0.0

    -0.9

    0.0

    0.0

    0.0

    How have loan covenants for small businesses changed?

    Past three months

    0.0

    0.0

    0.2

    4.3

    0.0

    0.0

    Next three months

    0.0

    1.8

    0.0

    6.7

    0.0

    0.0

    How have spreads on loans to medium PNFCs changed?

    Past three months

    0.9

    0.0

    -2.3

    5.9

    0.0

    2.6

    Next three months

    -10.2

    -6.5

    0.0

    -1.9

    9.5

    -0.5

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

    Past three months

    0.0

    -1.0

    0.0

    1.1

    0.0

    0.0

    Next three months

    0.0

    -1.0

    0.0

    -1.1

    0.0

    0.0

    How have collateral requirements for loans to medium PNFCs changed?

    Past three months

    0.0

    0.0

    0.0

    0.0

    -3.7

    0.0

    Next three months

    0.0

    0.0

    -3.8

    -3.8

    0.0

    3.5

    How have maximum credit lines for medium PNFCs changed?

    Past three months

    -0.8

    0.0

    -0.8

    -0.8

    -0.8

    0.0

    Next three months

    0.0

    -5.6

    -1.6

    0.0

    0.0

    0.0

    How have loan covenants for medium PNFCs changed?

    Past three months

    0.0

    0.0

    0.1

    1.9

    -0.8

    0.0

    Next three months

    0.0

    1.2

    0.0

    3.0

    0.0

    0.0

    How have spreads on loans to large PNFCs changed?

    Past three months

    -19.3

    -22.3

    -27.8

    -20.5

    -10.7

    -3.8

    Next three months

    -9.3

    -31.5

    -26.3

    -5.4

    -11.4

    4.5

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

    Past three months

    -16.6

    -14.3

    -27.6

    -11.0

    -8.6

    -2.6

    Next three months

    -3.0

    -33.0

    -18.8

    -0.8

    -9.3

    5.8

    How have collateral requirements for loans to large PNFCs changed?

    Past three months

    0.0

    0.0

    -1.8

    -7.6

    0.0

    -1.8

    Next three months

    0.0

    0.0

    -1.8

    -2.0

    0.0

    -1.8

    How have maximum credit lines for large PNFCs changed?

    Past three months

    4.5

    0.0

    1.0

    9.7

    -16.4

    -9.8

    Next three months

    -0.8

    -8.9

    -8.8

    0.0

    -5.7

    -1.0

    How have loan covenants for large PNFCs changed?

    Past three months

    0.0

    -9.0

    -2.8

    -3.7

    0.0

    -3.0

    Next three months

    0.0

    0.0

    -18.8

    2.1

    0.0

    -2.1

    How have spreads on loans to OFCs changed?

    Past three months

    -1.4

    -11.5

    -20.6

    -23.8

    -20.4

    -25.6

    Next three months

    -12.5

    -26.9

    -27.5

    -3.9

    0.0

    0.0

    How have fees/commissions on loans to OFCs changed?

    Past three months

    -1.4

    -11.5

    -22.6

    -21.7

    -20.4

    -19.5

    Next three months

    -12.5

    -20.9

    -22.6

    2.2

    0.0

    0.0

    How have collateral requirements for loans to OFCs changed?

    Past three months

    -1.4

    0.0

    -2.0

    -2.2

    0.0

    0.0

    Next three months

    -1.4

    0.0

    -2.0

    -2.2

    0.0

    0.0

    How have maximum credit lines for OFCs changed?

    Past three months

    1.4

    0.9

    -0.8

    -12.7

    -10.9

    -10.5

    Next three months

    1.4

    -10.9

    5.3

    -2.2

    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 new corporate loan tenors. The sign convention was changed in 2009 Q3 and was applied to the back data accordingly.

Next publication date: 18 January 2024

ISSN 1755-8247

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