– BOE: Q3 Corporate Credit Availability Net -5.5% vs Net -3.2% Q2
– BOE: Q3 Household Secured Credit Availability Net 21.9% vs -4.1% Q2
– BOE: Q3 Unsecured Household Credit Available Net -4.2% vs 8.1% Q2
LONDON (MNI) – Lenders reported a marked increase in the amount of
secured credit made available to households in Q3, but little change in
the availability of credit for unsecured household and corporate
lending, according to a Bank of England survey released Wednesday.
The availability of secured household credit rose to a net 21.9%,
up from -4.1% in the previous quarterly survey. This was the highest
balance since the BOE Credit Conditions Survey began in June 2007, at
the outset of the credit crunch. A further significant increase in
secured household lending was expected over the next three months, with
the Funding for Lending Scheme cited as an important contributing
factor.
The availability of credit in the corporate sector fell slightly in
Q3, dropping to a net -5.5%, from a net -3.2% reading in the second
quarter.
The survey found corporate credit availability was expected to
improve slightly in the next three months. A net 2.6% of respondents
said they expected credit availability to rise in the next three months,
up from 0.7% in Q2.
Lenders reported that demand for credit from small and large
companies had fallen in the three months to beginning-September,
although demand from medium-sized firms was unchanged. Demand was
expected to increase slightly from medium-sized firms in Q4, but demand
from large and small firms was expected to remain broadly unchanged.
In terms of defaults, lenders reported that the default rate on
secured loans to households fell slightly in the to beginning-September
but default rates on loans to small and large firms rose.
-London newsroom: +44 207 862 7491 email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABDS$]
