Credit Conditions Survey – 2021 Q2

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 2021 Q2 survey. It was conducted between 1 June and 18 June 2021. Any impact from more recent developments will therefore not be captured.

Lenders were asked to report changes in the three months to end-May 2021 (Q2), relative to the period between December 2020 and February 2021 (Q1), and expected changes in the three months to end-August (Q3), relative to the period between March and May.

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 Q3 Credit Conditions Survey will be published on 14 October 2021.


Supply

  • Lenders reported that the availability of secured credit to households increased in the three months to end-May 2021 (Q2). Lenders expected the availability of secured credit to increase further over the next three months to end-August (Q3) (Chart 1).
  • Lenders reported that the availability of unsecured credit to households increased in Q2 and was expected to increase further over the next quarter (Chart 2).
  • Lenders reported that the overall availability of credit to the corporate sector increased slightly in Q2. The availability of credit to small and medium-sized businesses remained unchanged in Q2, but increased slightly for large firms. The availability of credit to the corporate sector was expected to remain unchanged in Q3, across all firm sizes.

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

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)

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 both house purchase and remortgaging increased in Q2. Demand for remortgaging was expected to increase further in Q3, but demand for secured lending for house purchase was expected to decrease over the next quarter (Chart 3).
  • Lenders reported that demand for unsecured lending increased in Q2, across both credit cards and other unsecured lending, and was expected to increase further in Q3 (Chart 4).
  • Lenders reported that, in Q2, demand for corporate lending from small businesses decreased, demand from medium-sized businesses decreased slightly, and demand from large firms increased over the same period (Chart 5). Demand for corporate lending from small and large businesses was expected to increase in Q3, and demand from medium-sized businesses was expected to remain unchanged.

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

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)

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)

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 Q2, and were expected to narrow further in Q3.
  • Lenders reported that overall unsecured lending spreads narrowed slightly in Q2, and were expected to remain unchanged in Q3. Lenders also reported that the length of interest-free periods on credit cards for both balance transfers and purchases increased in Q2, and was expected to increase further in Q3.
  • Lenders reported that spreads on corporate lending widened for small-sized businesses, remained unchanged for medium businesses, but narrowed for large firms in Q2. Spreads on lending to small and medium-sized businesses were expected to remain unchanged over the next three months, but spreads on lending to large firms were expected to narrow further.


Defaults

  • The net percentage balance for changes in default rates on secured loans to households remained unchanged in Q2, but was expected to increase in Q3.
  • The net percentage balance for changes in default rates for total unsecured lending decreased slightly in Q2, but was expected to increase in Q3.
  • The net percentage balance for changes in default rates on loans to corporates increased for small businesses, decreased for medium businesses, and increased slightly for large businesses in Q2. These balances were expected to increase for small and medium-sized businesses in Q3, and were expected to remain unchanged for large businesses over the same period (Chart 6).

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

Footnotes
  • (a) See footnote (a) to Chart 1.
  • (b) Question: ‘How has the default rate on loans to small/medium/large 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 2021 Q2 survey. It was conducted between 1 June and 18 June 2021. 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


  • 1. Secured lending to households questionnaire results

    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)
    2020 2021
    Q1 Q2 Q3 Q4 Q1 Q2
    How has the availability of secured credit provided to households changed? Past three months -3.5 -72.1 9.5 2.4 13.7 39.1
    Next three months -22.8 -22.2 -3.5 24.7 37.6 16.5
    Factors contributing to changes in credit availability: (b)
    changing economic outlook Past three months -13.5 -79.5 -23.7 -1.9 15.0 42.2
    Next three months -65.0 -54.0 -22.4 4.8 26.2 25.4
    market share objectives Past three months 2.2 -10.5 13.6 11.6 12.8 9.0
    Next three months -6.7 4.0 5.3 1.2 18.9 12.8
    changing appetite for risk Past three months 2.6 -35.0 -6.2 -2.0 7.6 19.7
    Next three months -32.2 -41.8 -0.8 11.9 13.9 0.9
    tight wholesale funding conditions Past three months -2.3 -6.7 7.3 8.9 0.0 1.8
    Next three months -18.5 -6.7 -1.9 -1.8 0.0 0.0
    expectations for house prices Past three months -10.1 -55.1 -8.2 18.9 14.0 37.9
    Next three months -30.6 -48.5 -25.4 0.7 13.7 7.4
    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 -8.9 -33.6 -8.9 -9.9 -11.6 5.6
    Next three months -5.7 -19.6 -11.1 -1.5 4.5 4.8
    Borrowers with high loan to value ratios (more than 75%) Past three months -4.1 -83.1 2.0 6.8 28.7 59.3
    Next three months -25.1 -1.7 4.5 26.1 64.9 8.1
    Have you become more willing to lend to borrowers with housing equity less than 10% of the value of their home? Past three months 6.6 -90.5 -3.4 4.3 -0.4 62.6
    Next three months -21.0 -19.0 3.2 3.6 57.2 2.9
    How have credit scoring criteria for granting loan applications by households changed? Past three months -6.4 -62.4 -44.1 -17.8 -5.1 24.0
    Next three months -32.7 -31.8 -7.4 -11.4 20.3 2.7
    How has the proportion of household loan applications being approved changed? Past three months 0.7 -38.3 -30.1 16.2 -11.7 2.1
    Next three months -26.3 -38.8 -4.7 -2.1 -0.4 -6.1
    How has the average credit quality of new secured lending to households changed? Past three months 2.4 18.1 30.9 29.2 15.4 16.1
    Next three months 4.6 20.9 11.0 0.6 -4.6 -0.6
    How has the default rate on secured loans to households changed? Past three months -29.7 6.6 4.8 0.8 20.3 4.0
    Next three months 16.4 26.4 59.8 41.1 36.1 19.5
    How have losses given default on secured loans to households changed? Past three months 4.8 -14.0 5.8 -7.3 -33.2 -15.5
    Next three months 11.9 51.4 13.2 -0.5 0.7 -14.8
    How has demand for secured lending for house purchase from households changed? Past three months 27.9 -79.0 95.6 31.5 -21.9 81.1
    Next three months -70.8 18.5 -1.9 -8.8 42.8 -48.7
    of which: demand for prime lending Past three months 28.3 -83.7 63.0 31.5 -16.4 81.1
    Next three months -71.8 18.5 -1.9 -20.1 42.8 -47.0
    of which: demand for buy-to-let lending Past three months 41.2 -84.9 74.2 37.5 -9.4 49.0
    Next three months -66.3 21.5 12.5 -25.2 16.2 -6.7
    How has demand for secured lending for remortgaging from households changed? Past three months 38.5 -54.9 -13.5 2.3 -29.3 22.5
    Next three months -32.0 21.1 8.0 7.8 14.4 11.8
    How have overall secured lending spreads changed? Past three months -4.2 -61.8 -79.1 -41.9 20.6 51.1
    Next three months -37.0 -25.5 -32.2 33.9 65.4 51.9
    of which: spreads on prime lending Past three months -4.2 -61.8 -81.8 -41.9 20.6 51.1
    Next three months -37.0 -17.2 -30.4 33.9 65.4 51.9
    of which: spreads on buy-to-let lending Past three months -16.0 -57.5 -60.8 -43.3 14.6 39.1
    Next three months -37.0 -25.5 -22.6 23.9 47.9 40.7
    How have fees on secured lending changed? Past three months 9.6 16.9 5.9 -19.8 14.9 15.7
    Next three months -18.2 -9.9 0.0 17.4 0.0 11.2
    How have maximum loan to value ratios changed? Past three months 1.9 -76.3 -15.4 28.8 44.1 58.0
    Next three months -15.1 8.3 25.9 29.8 63.4 0.6
    How have maximum loan to income ratios changed? Past three months -6.5 -11.2 -7.9 -3.4 9.7 10.5
    Next three months -18.2 -2.1 -11.2 10.3 15.0 2.4

    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.

  • 2. Unsecured lending to households questionnaire results

    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)
    2020 2021
    Q1 Q2 Q3 Q4 Q1 Q2
    How has the availability of unsecured credit provided to households changed? Past three months 5.5 -63.3 -33.6 9.1 -6.5 14.4
    Next three months -26.4 -24.9 -10.0 4.2 22.1 40.4
    Factors contributing to changes in credit availability: (b)
    changing economic outlook Past three months -4.5 -64.1 -42.4 -11.8 0.6 19.1
    Next three months -31.4 -14.2 -16.4 -2.3 31.3 47.0
    market share objectives Past three months 9.8 -0.3 4.5 8.0 3.7 9.2
    Next three months -9.6 3.1 6.9 6.1 15.1 26.0
    changing appetite for risk Past three months -3.5 -38.9 -26.6 -1.8 -9.8 2.6
    Next three months -18.4 -12.4 -2.3 -2.0 6.7 18.9
    changing cost/availability of funds Past three months 0.0 -1.5 -0.2 0.5 0.5 0.4
    Next three months 4.9 -0.8 1.1 -0.9 1.7 7.0
    How have credit scoring criteria for granting credit card loan applications by households changed? Past three months -22.3 -46.8 -34.6 -24.4 -0.2 34.7
    Next three months -34.9 -21.7 -26.2 5.5 23.8 45.5
    How have credit scoring criteria for granting other unsecured loan applications by households changed? Past three months -25.8 -73.8 -35.7 -4.7 -1.9 20.1
    Next three months -21.6 -27.2 -19.2 -1.9 5.3 26.2
    How have credit scoring criteria for granting total unsecured loan applications by households changed? Past three months -22.9 -51.0 -34.8 -21.5 -0.4 32.8
    Next three months -32.8 -22.6 -25.1 4.5 21.2 43.0
    How has the proportion of credit card loan applications from households being approved changed? Past three months -13.3 -70.0 -1.2 3.9 -22.9 34.5
    Next three months -39.6 -11.6 -10.6 4.0 22.0 44.0
    How has the proportion of other unsecured loan applications from households being approved changed? Past three months 6.1 -47.5 -10.2 7.0 -2.7 32.9
    Next three months -12.5 13.8 -22.3 13.5 12.5 29.6
    How has the proportion of total unsecured loan applications from households being approved changed? Past three months -10.3 -66.4 -2.5 4.3 -20.0 34.3
    Next three months -35.4 -7.6 -12.4 5.4 20.7 42.1
    How has the average credit quality of new credit card lending to households changed? (c) Past three months 3.7 31.7 34.8 -0.8 -20.3 0.0
    Next three months 17.8 -8.3 -9.1 -2.2 -11.1 -46.5
    How has the average credit quality of new other unsecured lending to households changed? (c) Past three months 28.9 3.0 42.5 4.4 -10.1 2.9
    Next three months 1.9 4.6 -7.2 0.3 5.0 -32.2
    How has the average credit quality of new total unsecured lending to households changed? (c) Past three months 7.6 27.2 36.0 0.0 -18.9 0.4
    Next three months 15.3 -6.3 -8.8 -1.8 -8.9 -44.6
    How has the default rate on credit card loans to households changed? Past three months 14.1 6.4 -7.9 -42.2 -11.7 -5.6
    Next three months 0.3 26.8 47.2 20.4 50.7 17.7
    How has the default rate on other unsecured loans to households changed? Past three months -5.3 42.1 -23.1 19.2 2.1 -17.6
    Next three months 11.0 4.3 53.0 19.2 13.8 17.2
    How has the default rate on total unsecured loans to households changed? Past three months 11.0 12.1 -10.2 -33.3 -9.8 -7.2
    Next three months 2.0 23.2 48.1 20.3 45.5 17.7
    How have losses given default on credit card loans to households changed? Past three months -11.5 -9.5 -1.8 0.0 -10.4 1.3
    Next three months 4.3 4.5 20.6 1.3 -8.1 0.0
    How have losses given default on other unsecured loans to households changed? Past three months -3.1 17.8 -10.9 3.8 12.1 18.8
    Next three months 9.5 20.7 29.8 -2.1 0.0 4.3
    How have losses given default on total unsecured loans to households changed? Past three months -10.2 -5.2 -3.2 0.5 -7.2 3.6
    Next three months 5.1 7.1 22.0 0.9 -7.0 0.6
    How has demand for credit card lending from households changed? Past three months 39.8 -82.5 -18.2 9.8 -1.5 28.2
    Next three months -7.7 33.8 15.1 27.4 17.5 40.8
    How has demand for other unsecured lending from households changed? Past three months -18.8 -90.7 7.4 27.1 -17.9 53.0
    Next three months -4.9 11.8 23.6 -0.1 52.1 39.5
    How has demand for total unsecured lending from households changed? Past three months 30.6 -83.8 -14.3 12.3 -3.8 31.4
    Next three months -7.2 30.4 16.4 23.4 22.4 40.7
    How have spreads on credit cards changed? Past three months -16.0 2.9 -9.0 0.5 9.0 12.4
    Next three months -1.2 0.0 -21.9 6.2 6.2 -2.9
    How have spreads on other unsecured lending products changed? Past three months 9.9 11.5 5.5 -14.9 -1.3 -15.0
    Next three months -0.6 11.5 -21.0 -13.7 -18.1 -5.1
    How have overall unsecured lending spreads changed? Past three months -12.1 4.2 -6.9 -1.6 7.7 9.1
    Next three months -1.1 1.8 -21.7 3.4 2.9 -3.2
    How have credit card limits changed? Past three months 15.8 -5.7 -21.9 -20.0 -13.2 -16.3
    Next three months -17.3 -7.9 -18.7 2.6 -15.1 -2.6
    How has the minimum proportion of credit card balances to be paid changed? Past three months 0.0 -5.2 -6.8 9.8 -5.5 -7.7
    Next three months 9.3 0.0 15.0 6.4 13.0 11.4
    How have the following terms on new credit card lending to households changed?
    Length of interest free period on balance transfers Past three months -3.4 -28.2 -24.1 -12.1 11.8 21.7
    Next three months -19.5 -37.2 -7.5 -6.9 12.9 25.7
    Length of interest free period for purchases Past three months -15.1 -27.1 -22.7 0.0 1.5 19.6
    Next three months -15.7 -34.8 -7.5 -4.8 14.3 22.2
    How have maximum maturities on loans changed? (d) Past three months 0.0 -15.7 2.0 4.0 0.0 0.0
    Next three months -2.6 0.0 0.0 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.

  • 3. Corporate lending questionnaire results

    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)
    2020 2021
    Q1 Q2 Q3 Q4 Q1 Q2
    How has the availability of credit provided to the corporate sector overall changed? Past three months 0.8 71.0 8.7 -0.5 3.4 5.1
    Next three months 28.4 5.5 -12.4 2.6 9.7 3.6
    of which: commercial real estate sector Past three months 0.0 10.0 -30.0 -23.5 -21.3 1.5
    Next three months 7.3 -18.7 -9.1 -0.7 0.2 1.5
    How have commercial property prices affected credit availability to the commercial real estate sector, and/or secured lending to PNFCs? Past three months -11.9 -33.5 -14.3 -10.6 -10.1 -6.1
    Next three months -28.4 -33.8 -14.7 -21.1 -13.8 4.7
    Factors contributing to changes in credit availability: (b)
    changing economic outlook Past three months 8.1 70.0 25.0 -3.8 4.7 9.4
    Next three months 31.1 4.7 6.8 5.6 12.1 14.1
    changing sector-specific risks Past three months -1.2 55.9 18.2 -5.4 5.3 7.7
    Next three months 23.4 10.2 8.7 -0.6 6.6 7.7
    market share objectives Past three months 0.0 0.3 -2.2 -0.2 2.1 0.0
    Next three months -10.6 -1.1 -2.2 -0.2 2.1 1.0
    market pressures from capital markets Past three months 2.2 7.8 1.7 2.5 3.0 0.0
    Next three months 27.2 2.4 0.6 1.4 5.7 0.0
    changing appetite for risk Past three months 1.0 13.9 3.2 -14.2 1.4 0.0
    Next three months 18.3 -10.4 -8.6 -1.2 0.7 4.4
    tight wholesale funding conditions Past three months -1.1 -15.3 7.8 -9.2 -8.0 0.0
    Next three months -26.8 -8.2 0.0 -9.2 -8.0 0.0
    How has the availability of credit provided to small businesses changed? Past three months -1.4 78.7 6.4 -19.3 -1.0 -1.0
    Next three months 39.0 7.4 -8.8 -2.1 6.7 3.6
    How has the availability of credit provided to medium PNFCs changed? Past three months 0.0 77.1 6.6 3.3 -0.9 2.0
    Next three months 35.9 6.2 -24.1 -2.0 5.8 0.4
    How has the availability of credit provided to large PNFCs changed? Past three months 2.2 69.5 -6.4 -1.5 6.3 6.3
    Next three months 28.0 0.0 0.0 6.7 5.6 2.1
    How has the proportion of loan applications from small businesses being approved changed? Past three months -1.3 78.6 31.7 -22.6 -7.9 -13.5
    Next three months 8.6 -2.1 -27.8 -44.9 -9.8 -13.5
    How has the proportion of loan applications from medium PNFCs being approved changed? Past three months -1.1 55.2 0.0 -2.0 -3.0 4.2
    Next three months -1.0 10.4 -6.2 -7.4 6.2 7.5
    How has the proportion of loan applications from large PNFCs being approved changed? Past three months -1.0 20.3 -2.3 -2.7 -3.0 4.1
    Next three months 1.0 3.9 -2.0 -4.7 5.0 9.1
    Has there been a change in average credit quality on newly arranged PNFC borrowing facilities? (c) Past three months -2.0 -35.6 -18.9 -16.3 -8.0 0.2
    Next three months -25.6 -23.5 -23.8 -13.6 -14.7 13.5
    Has there been any change in ‘target hold’ levels associated with corporate lending? Past three months 0.0 8.7 -1.7 -1.1 2.6 0.8
    Next three months -2.0 8.0 7.8 -1.8 0.0 -0.9
    How have loan tenors on new corporate loans changed? (d) Past three months -3.6 -13.5 -3.8 -3.8 -1.1 -0.8
    Next three months -11.7 -3.1 11.1 0.8 10.4 6.1
    Has there been a change in draw-downs on committed lines by PNFCs? Past three months 5.2 80.2 -23.7 -12.2 -4.3 -0.4
    Next three months 53.9 16.9 18.1 14.7 11.4 0.4
    How has the default rate on loans to small businesses changed? Past three months 23.0 22.5 4.6 13.6 13.5 11.9
    Next three months 72.2 50.0 39.4 33.1 24.7 47.5
    How has the default rate on loans to medium PNFCs changed? Past three months -3.8 22.6 14.5 7.3 0.9 -14.2
    Next three months 62.1 52.3 46.1 25.9 17.8 21.5
    How has the default rate on loans to large PNFCs changed? Past three months 12.0 10.7 16.0 22.8 1.7 6.4
    Next three months 63.5 37.6 22.2 28.6 0.7 1.7
    How has loss given default on loans to small businesses changed? Past three months 15.7 20.3 -17.8 -1.5 1.0 1.0
    Next three months 56.4 58.5 27.6 29.4 12.3 1.0
    How has loss given default on loans to medium PNFCs changed? Past three months -3.7 27.6 5.1 -1.3 0.9 0.9
    Next three months 44.5 39.2 23.5 14.7 10.6 0.0
    How has loss given default on loans to large PNFCs changed? Past three months 4.2 13.6 4.4 2.0 0.8 -10.5
    Next three months 41.6 36.9 13.3 11.1 9.4 0.0
    How has demand for credit card lending from small businesses changed? Past three months 0.0 -79.1 -4.2 -11.7 -4.6 4.4
    Next three months 16.0 20.9 0.0 17.7 17.5 4.4
    How has demand for other unsecured lending from small businesses changed? Past three months -7.1 79.1 -27.5 -11.7 -2.8 -35.4
    Next three months 54.0 -31.4 -27.2 9.1 31.0 37.0
    How has demand for total unsecured lending from small businesses changed? Past three months -1.2 -54.6 -8.2 -11.7 -4.3 -0.9
    Next three months 22.3 12.8 -4.7 16.4 19.6 8.7
    How has demand for secured lending from small businesses changed? Past three months -0.7 58.0 -71.4 -18.1 -26.6 28.1
    Next three months 65.3 -25.9 13.4 14.0 12.2 4.7
    How has overall demand for lending from small businesses changed? Past three months -8.4 89.5 14.5 -6.1 -32.3 -29.8
    Next three months 90.2 -13.1 -25.5 -14.3 30.1 28.8
    How has demand for lending from medium PNFCs changed? Past three months 9.2 90.0 -45.4 -10.6 2.8 -5.7
    Next three months 77.2 -25.6 8.3 16.6 11.1 4.3
    How has demand for lending from large PNFCs changed? Past three months 3.4 84.2 -19.6 13.7 17.6 11.1
    Next three months 77.3 -27.0 -10.7 28.9 33.9 25.5
    How has demand for lending from OFCs changed? Past three months 0.0 -12.1 -0.7 -5.2 3.7 -1.1
    Next three months 37.5 -7.8 -10.2 -12.8 -9.1 0.0
    What have been the main factors contributing to changes in demand for lending: (b)
    mergers and acquisitions Past three months -14.5 -85.6 -36.6 6.1 16.2 20.6
    Next three months -52.8 12.6 18.9 33.9 42.2 24.4
    capital investment Past three months -8.2 -53.3 -38.0 -16.5 -3.1 -3.2
    Next three months -52.3 -14.8 -18.5 -6.8 23.7 18.2
    inventory finance Past three months 3.2 -6.2 1.5 -1.9 -9.9 -15.7
    Next three months 64.4 38.3 11.2 15.3 19.6 35.0
    balance sheet restructuring Past three months 5.2 26.5 4.7 19.9 7.1 0.1
    Next three months 50.7 28.5 16.1 8.1 8.2 10.5
    commercial real estate Past three months -20.5 -49.6 -54.4 20.0 15.9 9.0
    Next three months 8.0 -24.4 -34.2 15.1 22.3 7.6
    How have spreads on loans to small businesses changed? (c) Past three months -4.9 27.5 1.2 -19.2 -14.5 -12.1
    Next three months 29.7 11.4 -14.2 -7.2 -13.6 0.1
    How have fees/commissions on loans to small businesses changed? Past three months 1.3 45.5 3.7 -4.9 0.0 -11.1
    Next three months 16.9 11.6 0.0 -4.9 -1.4 12.2
    How have collateral requirements for loans to small businesses changed? Past three months 0.0 19.6 0.0 -1.0 -1.0 -1.0
    Next three months -3.1 2.5 -3.7 -9.8 0.0 0.0
    How have maximum credit lines for small businesses changed? Past three months -1.3 4.9 0.0 -1.0 -1.0 -1.0
    Next three months -2.7 0.0 -4.9 -1.0 -1.0 -1.0
    How have loan covenants for small businesses changed? Past three months 2.5 5.2 0.0 -1.9 -1.9 -1.3
    Next three months -2.0 2.6 0.0 -1.9 2.5 -1.3
    How have spreads on loans to medium PNFCs changed? Past three months -7.9 -8.0 -25.1 -7.5 -16.2 0.0
    Next three months 10.9 20.0 -8.5 -7.1 -11.1 0.0
    How have fees/commissions on loans to medium PNFCs changed? Past three months -8.2 16.9 -7.5 -4.2 -4.3 0.0
    Next three months 4.5 10.0 -6.4 0.0 0.0 0.0
    How have collateral requirements for loans to medium PNFCs changed? Past three months -1.4 6.4 -1.2 -0.9 -6.7 -0.9
    Next three months -1.1 -0.3 -3.2 -4.3 -5.8 0.0
    How have maximum credit lines for medium PNFCs changed? Past three months 0.0 6.5 -9.7 -2.7 -0.9 -0.9
    Next three months 3.4 0.0 -13.1 0.0 0.0 0.0
    How have loan covenants for medium PNFCs changed? Past three months 0.0 4.5 2.1 -0.9 -0.9 -0.9
    Next three months -9.3 2.1 -0.9 0.0 0.0 0.0
    How have spreads on loans to large PNFCs changed? Past three months -8.0 -46.5 -10.9 -6.7 12.7 16.2
    Next three months -38.9 -9.4 -1.3 -18.4 17.1 26.5
    How have fees/commissions on loans to large PNFCs changed? Past three months -9.7 -44.0 -10.3 -3.0 11.0 14.2
    Next three months -22.7 -13.3 0.5 -15.5 15.7 28.5
    How have collateral requirements for loans to large PNFCs changed? Past three months -2.4 -5.2 -1.1 0.6 0.0 1.8
    Next three months -2.5 -1.7 0.0 0.9 0.0 0.0
    How have maximum credit lines for large PNFCs changed? Past three months 0.9 25.6 5.2 -0.5 -0.1 2.6
    Next three months 1.0 3.1 -10.8 5.2 0.0 0.9
    How have loan covenants for large PNFCs changed? Past three months 0.0 -17.0 9.3 -1.4 -8.6 1.8
    Next three months -26.1 -10.1 -0.6 0.9 -5.8 5.5
    How have spreads on loans to OFCs changed? Past three months 15.3 -14.3 -14.4 -0.3 -0.4 12.5
    Next three months -45.3 -7.5 5.2 4.9 2.2 18.1
    How have fees/commissions on loans to OFCs changed? Past three months 1.3 -11.8 -1.4 2.2 2.2 12.5
    Next three months -12.2 -8.2 2.3 2.2 2.2 12.5
    How have collateral requirements for loans to OFCs changed? Past three months 0.0 -1.1 -1.4 0.0 0.0 -0.9
    Next three months -30.8 0.6 -1.4 0.0 0.0 0.0
    How have maximum credit lines for OFCs changed? Past three months 0.0 3.5 -3.7 -2.2 7.2 -0.9
    Next three months -0.9 4.8 -2.3 -2.2 -7.2 -0.9

    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: 14 October 2021.

ISSN 1755-8247

Disclaimer

Bank of England published this content on 15 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2021 08:44:05 UTC.

Publicnow 2021

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