The Governor examines the role of credit, more particularly lending to the personal sector, in its macroeconomic, prudential and social aspects. He argues that the figures for personal sector lending have been affected in recent years by financial innovation and a shift in the personal sector's behaviour, and have to be interpreted in the light of these changes: the recent pace of credit growth must argue for caution, but its economic significance should not be judged simplistically on the basis of past relationships between borrowing and lending. He goes on to consider the prudential and social implications of the easing of credit availability and the need this creates for both individuals and institutions to adjust their behaviour and attitudes.
Personal credit in perspective - Governor's speech