Economy

United Kingdom lenders see sharp tightening of consumer credit in coming months

United Kingdom banks are planning the biggest squeeze in consumer credit since late 2008, when the economy was in the depths of recession, according to a Bank of England survey.

The survey shows that the net balance of lenders' expectations for the availability of unsecured lending over the next three months has fallen to minus 28.6 per cent, down from 16.2 per cent previously, the lowest since the 2008 recession.

Consumer credit grew at an annual rate of 9.8 per cent in August, according to the Bank, reflecting booming vehicle loans and credit card borrowing.

"Although competition and growth in this market remain strong, there are tentative signs of a slight tightening in lending criteria, with lenders expecting further tightening in Q4", the Bank said. A significant decrease in availability is expected for the fourth quarter.

Credit availability for businesses remained stable during the third quarter although demand dipped a touch from its earlier level.

Lending costs rose for businesses during the third quarter while mortgage loan pricing came down, a function of banks competing fiercely for market share, while the price of unsecured credit to consumers held steady despite an increase in default rates.

Demand for both credit card and other unsecured lending products was reported to be unchanged in third quarter, and was expected to be unchanged again in the fourth quarter.

Lenders logged a fall in demand for corporate lending for businesses of all sizes - and small businesses in particular.



Like this

Latest


12 October 2017
Usa, la proposta choc di Trump: "Espandere l'arsenale nucleare"
Lo sostiene la Nbc , che ha rivelato in esclusiva il presunto contenuto di un incontro con i vertici militari e politici avvenuto la scorsa estate, grazie a tre fonti, presenti al vertice.

12 October 2017
$0.18 EPS Expected for Graphic Packaging Holding Company (GPK) This Quarter
The industrial products company reported $0.15 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.15. The total amount of shares outstanding is 311.87 million, giving the company a market capitalization of about 4.42 billion.

12 October 2017
Nokia 9 Renders Reveal Curved QHD Display, Narrow Bezels And Dual Cameras
Although the render is handsome , there is always the potential that things could change before the handset goes to production. The Nokia 9 looks like a sleek device, but the company is exhibiting an excess of courage by ditching the headphone jack.

12 October 2017
BMW considers Chinese joint venture with Great Wall
Local media speculation of a tie-up with BMW sent its shares soaring 14% Wednesday, prompting suspension in trading. Trading will be suspended pending clarification of press articles, the company said in a statement.

12 October 2017
EC to announce poll dates for Gujarat, Himachal
Congress has already announced Chief Minister Virbhadra Singh as the party's chief ministerial candidate last week. As per sources, Gujarat elections will be held in 2 phases while the Himachal elections will be in a single phase.

12 October 2017
Israeli spies 'watched Russian agents breach Kaspersky software'
In antivirus "Kaspersky Lab" was spelled out an in depth scan documents on the computers to search for classified information. The US Department of Homeland Security ordered all US government agencies to stop using Kaspersky products last month.

12 October 2017
San Francisco 49ers won't be forcing players to stand, says Eric Reid
At its regularly scheduled fall meetings next week, the National Football League will discuss the anthem issue. That was in reaction to President Trump's condemnation at a rally last month of any player that didn't stand.

12 October 2017
Kimmel fires back at Trump: You should quit the presidency
Anyway, Kimmel took a moment to address his interaction with DJTJ - and to deliver the Weinstein joke he promised via Twitter . When one of his contestants was aggressively feeling around his trousers , he told her "You're gonna make a fine wife".

12 October 2017
Arsenal would win title if Wenger had Redknapp´s tactical nous - Merson
Merson then revealed the moment he knew Redknapp was a great manager. "We were 2-0 down at half-time and it could've been 10-0". Redknapp was sacked by Birmingham City last month as the team struggled at the wrong end of the Championship table.

12 October 2017
Congress surges ahead of key rival BJP in Nanded municipal polls
Asaduddin Owaisi led All India Majlis-e-Ittehadul Muslimeen (AIMIM) which was leading in 02 seats is now behind its rivals. Sharad Pawar's NCP won 10 seats, AIMIM won 11, one seat was won by an independent candidate and two more by other parties.



Recommended