LONDON (MNI) – Weak lending figures are tipped to worsen further in
the months ahead, with a squeeze expected in corporate and household
credit availability, the latest BOE Credit Conditions Survey shows.
The BOE survey shows that the availability of credit to households
has been growing slowly so far in 2011, and it is expected to decrease
in the third quarter.
The household credit availability balance in Q2 stood at 2.9% and
this is expected to decline to -1.9% in the next three months.
The balance is a weighted measure of lenders saying credit
availability will rise or fall.
Corporate credit availabaility is expected to ease in Q3. The
survey found a net 4.1% of lenders increased corporate credit
availability in the past 3 months, down from 6.9% in the Q1 survey. Just
3.4% of those surveyed expect corporate credit to increase in Q3.
–London newsroom: 4420 7862 7491; email: ukeditorial@marketnews.com
[TOPICS: M$$BE$, M$B$$$]