Biggest share of UK lenders since 2008 plan to tighten supply of consumer credit

Thrugelmir

In the news today.

More British lenders plan to rein in the supply of credit to consumers in the next three months than at any time since the 2008/09 financial crisis, according to a Bank of England survey that may add to concerns about the economic outlook ahead of Brexit.

A net balance of 18.8 percent of British lenders expect to tighten the availability of unsecured credit to consumers in the next three months, the BoE's quarterly credit conditions survey showed.

The last time the BoE conducted the quarterly survey, 7.9 percent of banks said they planned a similar tightening.

The new result marked the biggest proportion of lenders planning to tighten consumer lending since the end of 2008 - when Britain was mired in recession. The economic outlook was reported as by far the biggest drag on plans for credit supply.

Consumer credit expanded strongly last year, helping to sustain spending by households that fuelled strong economic growth after last June's vote to leave the European Union.

But Thursday's figures will add to worries about the outlook for consumers, who have become increasingly pressured by rising prices after the pound's fall following the Brexit vote and a rise in global oil prices.

http://uk.reuters.com/article/uk-britain-economy-lending-idUKKBN17F0ZI

Carl31

Are we not at our highest levels of UK household debt since the 2008 crisis? Surely this is a positive step by lenders for once?

mayonnaise

Consumer credit expanded strongly last year, helping to sustain spending by households that fuelled strong economic growth after last June's vote to leave the European Union.

This so called 'brexit boom' was all on the credit card? Good times ahead.

Tiners

Talk about shutting the stable door after the horse has bolted.

antrobus

Tiners wrote: »

Talk about shutting the stable door after the horse has bolted.

The horse has not yet bolted.:)

The horse bolts when the defaults start rolling in, and the bad debts start hitting the profit and loss account.