Credit Conditions Survey - 2026 Q3

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; and

lending to non-financial corporations, to small businesses, and to non-bank financial firms.

This report presents the results of the 2026 Q3 survey. Lenders were asked to report changes in the three months to end-August 2026 (Q3), relative to the period between March and May, and expected changes in the three months to end-November 2026 (Q4), relative to the period between June and August. The survey was conducted between 17 August and 4 September 2026. Any impact from more recent developments will therefore not be captured.

The results are based on lenders’ own responses to the survey, and are reported as net percentage balances. Changes in balances are described as an ‘increase’ when the balance is greater than 10, as a ‘decrease’ when less than -10, as a ‘slight increase’ when between 5 and 10, as a ‘slight decrease’ when between -5 and -10, and as ‘unchanged’ when less than 5 in absolute terms. 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 2026 Q4 Credit Conditions Survey will be published on 14 January 2027.

Supply

Lenders reported that the availability of secured credit to households decreased in the three months to end-August 2026 (Q3). It was expected to increase slightly over the next three months to end-November 2026 (Q4) (Chart 1).

Lenders reported that the availability of unsecured credit to households decreased in Q3 and was expected to increase slightly in Q4 (Chart 2).

Lenders reported that the overall availability of credit to the corporate sector was unchanged in Q3. When broken down by size of business, lenders reported that credit availability to small businesses and medium-sized businesses decreased and to large businesses was unchanged in Q3. Overall availability was expected to be unchanged in Q4 (Chart 3).

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

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange 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)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange 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 unsecured credit provided to households changed?’.

(c) A positive balance indicates that more unsecured credit is available.

Chart 3: Corporate credit availability by firm size (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectations 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 credit to small businesses, medium private non-financial corporations (PNFCs) and large PNFCs changed?’.

(c) A positive balance indicates an increase in credit availability.

Demand

Lenders reported that demand for secured lending for house purchase decreased in Q3, and was expected to increase slightly in Q4. Demand for secured lending for remortgaging decreased in Q3, and was expected to increase in Q4 (Chart 4).

Lenders reported that overall demand for unsecured lending was unchanged in Q3, and was expected to increase slightly in Q4. Within the overall figure, demand for credit card lending was unchanged in Q3, and was expected to be unchanged in Q4. Demand for other unsecured lending slightly increased in Q3, and was expected to increase in Q4 (Chart 5).

Lenders reported that demand for corporate lending from small businesses and medium-sized businesses decreased and from large businesses was unchanged in Q3 (Chart 6). Demand for corporate lending was expected to decrease slightly for small businesses and medium-sized businesses and expected to be unchanged for large businesses in Q4.

Chart 4: Demand for secured lending for house purchases and remortgaging (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectations 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 demand for secured lending for house purchase/remortgaging from households changed?’.

(c) A positive balance indicates an increase in demand.

Chart 5: Demand for unsecured lending by loan type (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectations 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 demand for credit card/other unsecured lending from households changed?’.

(c) A positive balance indicates an increase in demand.

Chart 6: Corporate demand for lending by firm size (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectations 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 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 Q3, and were expected to narrow in Q4.

Lenders reported that overall unsecured lending spreads were unchanged in Q3, and were expected to be unchanged in Q4. Lenders also reported that the length of interest-free periods on credit cards for balance transfers was unchanged in Q3, and was expected to be unchanged in Q4. The length of interest-free periods on new credit cards for purchases was unchanged in Q3, and was expected to be unchanged in Q4.

Lenders reported that spreads on corporate lending to small businesses, medium-sized businesses and large businesses were unchanged in Q3. Spreads were expected to be unchanged for small businesses and medium-sized businesses and expected to narrow for large businesses over the next three months.

Defaults

Lenders reported that default rates on secured loans to households slightly decreased in Q3, and were expected to be unchanged in Q4 (Chart 7). Losses given default on secured loans were unchanged in Q3, and were expected to increase slightly in Q4.

Lenders reported that default rates on total unsecured lending increased in Q3, and were expected to increase in Q4 (Chart 7). Within this total figure, defaults on credit card loans and other unsecured loans increased in Q3. Defaults on credit card loans were expected to increase and defaults on other unsecured loans were expected to decrease slightly in Q4.

Lenders reported that default rates on loans to corporates for small businesses, medium-sized businesses and large businesses were unchanged in Q3. These were expected to be unchanged for small businesses, medium-sized businesses and large businesses in Q4.

Losses given default for small businesses, medium-sized businesses and large businesses were unchanged in Q3.

Chart 7: Default rates on secured and total unsecured loans to households (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectations 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 default rate on secured/total unsecured loans to households changed?’.

(c) A positive balance indicates an increase in the default rate.

How to interpret this survey

This report presents the results of the 2026 Q3 survey. It was conducted between 17 August and 4 September 2026. 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’ when the balance is greater than 10, as a ‘decrease’ when less than -10, as a ‘slight increase’ when between 5 and 10, as a ‘slight decrease’ when between -5 and -10, and as ‘unchanged’ when less than 5 in absolute terms.

Annexes

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, changes in balances are described as an ‘increase’ when the balance is greater than 10, as a ‘decrease’ when less than -10, as a ‘slight increase’ when between 5 and 10, as a ‘slight decrease’ when between -5 and -10, and as ‘unchanged’ when less than 5 in absolute terms. (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 an Excel file in the ‘Related documents’ section.Net percentage balances (a)2025 2026 Q2Q3Q4Q1Q2Q3How has the availability of secured credit provided to households changed?Past three months23.236.930.315.52.6-15.5Next three months21.226.59.122.010.45.1Factors contributing to changes in credit availability: (b)Changing economic outlookPast three months5.52.0-1.5-6.4-16.5-7.5Next three months7.13.0-6.2-4.3-1.7-1.2Market share objectivesPast three months5.60.02.311.91.3-14.1Next three months9.15.723.24.90.05.1Changing appetite for riskPast three months3.818.815.16.78.55.1Next three months12.83.36.622.06.313.3Tight wholesale funding conditionsPast three months-5.3-5.30.00.0-4.0-7.1Next three months-3.8-3.90.0-2.4-0.5-0.8Expectations for house pricesPast three months1.5-1.00.0-6.8-1.3-1.2Next three months0.0-1.5-7.17.7-8.9-14.1How 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 months22.628.129.87.4-9.9-12.6Next three months19.726.017.7-2.017.10.0Borrowers with high loan to value ratios (more than 75%)Past three months23.027.011.610.1-2.2-19.9Next three months19.625.510.222.81.312.5Have you become more willing to lend to borrowers with housing equity less than 10% of the value of their home?Past three months7.217.67.124.99.7-4.4Next three months8.612.319.211.4-5.59.7How have credit scoring criteria for granting loan applications by households changed?Past three months2.35.014.211.1-1.65.3Next three months3.412.713.68.3-0.55.1How has the proportion of household loan applications being approved changed?Past three months2.713.412.922.9-8.0-10.5Next three months14.48.314.2-0.50.01.3How has the average credit quality of new secured lending to households changed?Past three months-0.7-2.7-7.60.85.06.5Next three months2.5-1.40.01.0-9.4-8.2How has the default rate on secured loans to households changed?Past three months0.8-8.1-13.06.2-4.2-5.5Next three months-4.2-10.3-13.3-6.64.93.7How have losses given default on secured loans to households changed?Past three months5.916.5-4.44.021.9-3.7Next three months7.2-7.80.50.7-3.47.9How has demand for secured lending for house purchase from households changed?Past three months30.90.7-13.90.314.9-37.1Next three months-18.54.5-11.030.0-23.29.8of which: demand for prime lendingPast three months30.90.7-15.012.223.8-21.3Next three months-19.84.5-0.426.8-23.29.8of which: demand for buy-to-let lendingPast three months23.9-12.5-27.8-6.0-1.3-22.2Next three months1.22.4-0.86.9-31.71.8How has demand for secured lending for remortgaging from households changed?Past three months30.425.9-3.914.842.5-32.5Next three months21.415.117.422.1-20.523.1How have overall secured lending spreads changed?Past three months5.833.317.826.7-24.113.1Next three months1.23.420.21.032.517.3of which: spreads on prime lendingPast three months9.429.035.020.8-17.74.0Next three months1.64.312.61.228.19.3of which: spreads on buy-to-let lendingPast three months9.927.017.419.4-16.512.3Next three months-0.30.020.28.732.017.7How have fees on secured lending changed?Past three months0.00.00.00.0-7.20.0Next three months0.00.00.00.00.00.0How have maximum loan to value ratios changed?Past three months0.50.00.012.211.81.8Next three months1.87.04.219.30.89.2How have maximum loan to income ratios changed?Past three months0.518.119.37.09.09.2Next three months3.619.621.81.09.87.0Footnotes(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.

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, changes in balances are described as an ‘increase’ when the balance is greater than 10, as a ‘decrease’ when less than -10, as a ‘slight increase’ when between 5 and 10, as a ‘slight decrease’ when between -5 and -10, and as ‘unchanged’ when less than 5 in absolute terms. (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 an Excel file in the ‘Related documents’ section.

Net percentage balances (a)

How has the availability of secured credit provided to households changed?

Factors contributing to changes in credit availability: (b)

Changing appetite for risk

Tight wholesale funding conditions

Expectations for house prices

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)

Borrowers with high loan to value ratios (more than 75%)

Have you become more willing to lend to borrowers with housing equity less than 10% of the value of their home?

How have credit scoring criteria for granting loan applications by households changed?

How has the proportion of household loan applications being approved changed?

How has the average credit quality of new secured lending to households changed?

How has the default rate on secured loans to households changed?

How have losses given default on secured loans to households changed?

How has demand for secured lending for house purchase from households changed?

of which: demand for prime lending

of which: demand for buy-to-let lending

How has demand for secured lending for remortgaging from households changed?

How have overall secured lending spreads changed?

of which: spreads on prime lending

of which: spreads on buy-to-let lending

How have fees on secured lending changed?

How have maximum loan to value ratios changed?

How have maximum loan to income ratios changed?

(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.

The methodology for calculating and interpreting the aggregate results is described in Annex 1. A full set of results is available in an Excel file in the ‘Related documents’ section.Net percentage balances (a)2025 2026 Q2Q3Q4Q1Q2Q3How has the availability of unsecured credit provided to households changed?Past three months11.37.610.6-2.824.3-11.0Next three months18.98.47.217.8-10.15.6Factors contributing to changes in credit availability: (b)Changing economic outlookPast three months0.00.0-0.40.0-10.1-3.4Next three months0.70.0-0.42.3-3.7-0.2Market share objectivesPast three months3.111.811.00.90.00.0Next three months6.312.45.40.4-3.00.0Changing appetite for riskPast three months-0.4-1.6-0.72.8-5.5-6.5Next three months1.20.413.518.1-8.70.4Changing cost/availability of fundsPast three months-5.30.02.90.0-8.311.0Next three months0.0-2.80.0-0.910.15.2How have credit scoring criteria for granting credit card loan applications by households changed?Past three months21.017.75.9-4.4-18.6-17.1Next three months14.57.90.0-14.5-14.43.6How have credit scoring criteria for granting other unsecured loan applications by households changed?Past three months12.04.47.512.3-0.12.8Next three months8.823.63.212.316.2-7.8How have credit scoring criteria for granting total unsecured loan applications by households changed?Past three months19.715.86.1-2.0-12.2-14.3Next three months13.710.20.5-10.7-4.11.9How has the proportion of credit card loan applications from households being approved changed?Past three months14.5-2.1-2.6-17.7-5.1-2.6Next three months10.05.37.7-7.6-10.10.3How has the proportion of other unsecured loan applications from households being approved changed?Past three months11.74.4-21.46.48.0-11.3Next three months8.826.1-11.8-7.214.1-9.9How has the proportion of total unsecured loan applications from households being approved changed?Past three months14.1-1.2-5.3-14.3-2.6-3.9Next three months9.88.34.9-7.6-0.1-1.1How has the average credit quality of new credit card lending to households changed? (c)Past three months-5.5-17.7-3.4-3.3-13.221.9Next three months-3.7-10.02.9-5.625.2-7.9How has the average credit quality of new other unsecured lending to households changed? (c)Past three months8.2-7.5-6.5-1.713.4-15.1Next three months4.3-5.6-6.7-5.7-12.37.1How has the average credit quality of new total unsecured lending to households changed? (c)Past three months-3.5-16.2-3.8-3.0-18.716.6Next three months-2.5-9.31.5-5.615.6-5.7How has the default rate on credit card loans to households changed?Past three months3.33.910.718.637.425.7Next three months3.310.511.711.123.223.1How has the default rate on other unsecured loans to households changed?Past three months-11.12.918.117.221.510.2Next three months-4.77.018.1-1.42.6-7.8How has the default rate on total unsecured loans to households changed?Past three months1.23.711.818.433.623.4Next three months2.210.012.69.316.118.6How have losses given default on credit card loans to households changed?Past three months0.04.44.30.00.00.0Next three months4.50.00.00.07.6-2.6How have losses given default on other unsecured loans to households changed?Past three months2.75.0-13.78.1-5.2-21.2Next three months0.02.52.4-5.0-5.2-5.4How have losses given default on total unsecured loans to households changed?Past three months0.44.51.71.1-0.9-3.0Next three months3.80.40.3-0.76.7-3.0How has demand for credit card lending from households changed?Past three months14.7-5.914.44.2-8.5-3.6Next three months3.82.52.9-4.24.23.2How has demand for other unsecured lending from households changed?Past three months30.927.5-13.1-22.143.38.4Next three months-7.40.5-22.620.8-13.115.6How has demand for total unsecured lending from households changed?Past three months17.1-1.010.40.5-2.3-1.9Next three months2.22.2-0.8-0.62.05.0How have spreads on credit cards changed?Past three months-27.1-31.1-28.1-29.830.62.6Next three months-28.4-29.1-32.1-26.516.5-0.8How have spreads on other unsecured lending products changed?Past three months-10.60.718.4-6.635.7-3.7Next three months-16.8-3.7-15.817.6-24.31.9How have overall unsecured lending spreads changed?Past three months-24.7-26.4-21.3-26.634.71.7Next three months-26.7-25.3-29.8-20.413.8-0.4How have credit card limits changed?Past three months-7.95.93.911.018.010.1Next three months0.0-7.28.821.24.30.0How has the minimum proportion of credit card balances to be paid changed?Past three months0.00.00.00.0-7.60.0Next three months0.00.00.00.00.00.0How have the following terms on new credit card lending to households changed?Length of interest free period on balance transfersPast three months19.122.332.023.5-17.70.0Next three months3.724.931.617.60.00.0Length of interest free period for purchasesPast three months13.213.320.621.0-14.22.6Next three months-3.324.910.39.97.60.0How have maximum maturities on loans changed? (d)Past three months0.012.45.210.51.43.7Next three months0.02.510.61.41.41.3Footnotes(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.

The methodology for calculating and interpreting the aggregate results is described in Annex 1. A full set of results is available in an Excel file in the ‘Related documents’ section.

Net percentage balances (a)

How has the availability of unsecured credit provided to households changed?

Factors contributing to changes in credit availability: (b)

Changing appetite for risk

Changing cost/availability of funds

How have credit scoring criteria for granting credit card loan applications by households changed?

How have credit scoring criteria for granting other unsecured loan applications by households changed?

How have credit scoring criteria for granting total unsecured loan applications by households changed?

How has the proportion of credit card loan applications from households being approved changed?

How has the proportion of other unsecured loan applications from households being approved changed?

How has the proportion of total unsecured loan applications from households being approved changed?

How has the average credit quality of new credit card lending to households changed? (c)

How has the average credit quality of new other unsecured lending to households changed? (c)

How has the average credit quality of new total unsecured lending to households changed? (c)

How has the default rate on credit card loans to households changed?

How has the default rate on other unsecured loans to households changed?

How has the default rate on total unsecured loans to households changed?

How have losses given default on credit card loans to households changed?

How have losses given default on other unsecured loans to households changed?

How have losses given default on total unsecured loans to households changed?

How has demand for credit card lending from households changed?

How has demand for other unsecured lending from households changed?

How has demand for total unsecured lending from households changed?

How have spreads on credit cards changed?

How have spreads on other unsecured lending products changed?

How have overall unsecured lending spreads changed?

How have credit card limits changed?

How has the minimum proportion of credit card balances to be paid changed?

How have the following terms on new credit card lending to households changed?

Length of interest free period on balance transfers

Length of interest free period for purchases

How have maximum maturities on loans changed? (d)

(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.

The methodology for calculating and interpreting the aggregate results is described in Annex 1. A full set of results is available in an Excel file in the ‘Related documents’ section.Net percentage balances (a)2025 2026 Q2Q3Q4Q1Q2Q3How has the availability of credit provided to the corporate sector overall changed?Past three months7.97.73.53.00.0-0.1Next three months9.17.12.72.3-2.01.9of which: commercial real estate sectorPast three months27.723.224.417.99.310.2Next three months34.213.616.610.1-1.01.8How have commercial property prices affected credit availability to the commercial real estate sector, and/or secured lending to PNFCs?Past three months22.818.28.59.08.27.8Next three months21.711.37.210.2-1.2-10.9Factors contributing to changes in credit availability: (b)Changing economic outlookPast three months6.94.80.51.2-8.8-5.1Next three months9.81.63.88.70.35.4Changing sector-specific risksPast three months10.55.85.44.20.83.4Next three months12.8-0.73.98.24.85.4Market share objectivesPast three months22.017.712.915.511.76.3Next three months22.011.37.621.23.63.5Market pressures from capital marketsPast three months-3.91.42.73.32.22.1Next three months1.82.62.75.34.33.2Changing appetite for riskPast three months9.1-1.21.92.11.0-2.5Next three months10.3-1.21.96.32.4-4.8Tight wholesale funding conditionsPast three months0.00.00.00.01.11.1Next three months0.00.00.00.00.00.0How has the availability of credit provided to small businesses changed?Past three months24.212.012.014.0-9.1-12.1Next three months13.813.913.914.02.0-9.3How has the availability of credit provided to medium PNFCs changed?Past three months10.216.18.812.1-6.5-10.5Next three months11.517.311.613.53.1-7.0How has the availability of credit provided to large PNFCs changed?Past three months7.910.58.513.73.54.1Next three months7.98.811.611.92.95.0How has the proportion of loan applications from small businesses being approved changed?Past three months0.010.08.39.1-11.10.4Next three months3.29.80.00.0-2.9-9.3How has the proportion of loan applications from medium PNFCs being approved changed?Past three months5.7-1.47.00.0-8.2-8.0Next three months2.70.08.20.5-1.1-8.0How has the proportion of loan applications from large PNFCs being approved changed?Past three months0.02.20.62.711.04.9Next three months1.51.43.22.810.73.8Has there been a change in average credit quality on newly arranged PNFC borrowing facilities? (c)Past three months-3.5-3.1-6.10.0-1.4-1.5Next three months-3.8-1.3-1.4-1.50.0-1.4Has there been any change in ‘target hold’ levels associated with corporate lending?Past three months-1.2-2.8-3.7-12.3-4.8-4.8Next three months-2.9-2.8-2.7-2.1-2.4-1.8How have loan tenors on new corporate loans changed? (d)Past three months1.40.0-1.48.70.41.3Next three months0.00.00.00.00.00.0Has there been a change in draw-downs on committed lines by PNFCs?Past three months0.02.37.20.03.8-1.3Next three months0.08.62.26.50.72.8How has the default rate on loans to small businesses changed?Past three months0.00.09.61.91.91.9Next three months1.80.00.03.63.81.9How has the default rate on loans to medium PNFCs changed?Past three months0.00.00.01.71.61.6Next three months1.60.00.03.23.31.6How has the default rate on loans to large PNFCs changed?Past three months-1.5-1.4-1.4-1.4-1.41.3Next three months0.00.00.04.00.00.0How has loss given default on loans to small businesses changed?Past three months1.80.00.0-1.91.91.9Next three months1.80.00.00.00.01.9How has loss given default on loans to medium PNFCs changed?Past three months1.60.0-6.0-1.71.61.6Next three months-8.80.00.00.00.01.6How has loss given default on loans to large PNFCs changed?Past three months10.27.32.00.00.01.5Next three months1.40.00.01.27.11.5How has demand for credit card lending from small businesses changed?Past three months0.011.82.98.620.03.0Next three months0.011.811.311.311.411.6How has demand for other unsecured lending from small businesses changed?Past three months19.55.89.916.85.78.4Next three months5.82.913.222.73.720.4How has demand for total unsecured lending from small businesses changed?Past three months3.110.94.09.821.43.8Next three months0.910.411.613.012.312.9How has demand for secured lending from small businesses changed?Past three months13.713.511.2-1.8-2.78.2Next three months-4.8-3.4-14.019.4-2.59.2How has overall demand for lending from small businesses changed?Past three months7.15.61.87.2-11.1-12.1Next three months5.69.4-1.35.5-3.5-6.4How has demand for lending from medium PNFCs changed?Past three months6.60.11.6-1.7-15.8-10.5Next three months0.66.0-2.6-8.7-3.1-5.6How has demand for lending from large PNFCs changed?Past three months0.08.6-1.38.9-3.01.3Next three months5.96.9-0.12.72.63.6How has demand for lending from OFCs (other financial corporations) changed?Past three months-3.5-6.216.12.32.40.8Next three months0.02.916.15.52.74.3What have been the main factors contributing to changes in demand for lending: (b)Mergers and acquisitionsPast three months-6.81.1-8.58.00.114.4Next three months0.4-1.27.6-2.2-0.36.6Capital investmentPast three months-2.62.5-9.7-2.8-3.71.6Next three months2.94.011.7-7.4-6.92.9Inventory financePast three months-4.2-0.56.9-0.44.70.0Next three months7.510.110.12.80.00.0Balance sheet restructuringPast three months0.4-1.04.61.2-1.01.6Next three months1.40.02.72.6-2.11.5Commercial real estatePast three months15.918.29.415.4-22.2-2.6Next three months27.68.39.412.1-7.011.9How have spreads on loans to small businesses changed? (c)Past three months0.03.2-3.5-3.6-1.7-4.8Next three months3.21.2-3.53.7-4.90.0How have fees/commissions on loans to small businesses changed?Past three months1.80.00.0-3.00.00.8Next three months3.20.00.00.0-2.90.0How have collateral requirements for loans to small businesses changed?Past three months0.00.0-1.90.00.00.0Next three months-1.82.00.00.00.00.0How have maximum credit lines for small businesses changed?Past three months1.51.50.00.00.00.0Next three months1.51.59.90.00.09.7How have loan covenants for small businesses changed?Past three monthsn/a*n/a*n/a*0.0n/a*n/a*Next three monthsn/a*n/a*n/a*6.5n/a*n/a*How have spreads on loans to medium PNFCs changed?Past three months12.113.33.08.10.0-2.1Next three months1.73.53.00.0-2.10.0How have fees/commissions on loans to medium PNFCs changed?Past three months8.87.29.03.66.2-2.5Next three months4.19.03.10.0-2.50.0How have collateral requirements for loans to medium PNFCs changed?Past three months0.00.0-1.60.00.00.0Next three months-1.5-1.60.00.00.00.0How have maximum credit lines for medium PNFCs changed?Past three months0.02.80.00.00.00.0Next three months0.00.00.00.00.00.0How have loan covenants for medium PNFCs changed?Past three months1.41.35.90.00.0-1.7Next three months1.41.30.00.00.00.0How have spreads on loans to large PNFCs changed?Past three months2.627.926.515.319.34.3Next three months10.020.212.37.616.712.8How have fees/commissions on loans to large PNFCs changed?Past three months1.416.710.48.915.79.6Next three months0.017.83.711.114.28.5How have collateral requirements for loans to large PNFCs changed?Past three months0.00.01.80.01.71.6Next three months0.00.01.80.00.00.0How have maximum credit lines for large PNFCs changed?Past three months2.412.89.010.813.09.2Next three months1.72.60.0-3.22.86.8How have loan covenants for large PNFCs changed?Past three months0.05.10.91.02.63.2Next three months0.05.10.00.01.00.0How have spreads on loans to OFCs changed?Past three months15.916.028.28.16.58.0Next three months3.98.68.516.68.7-8.4How have fees/commissions on loans to OFCs changed?Past three months5.80.00.09.615.26.2Next three months0.08.80.016.60.00.0How have collateral requirements for loans to OFCs changed?Past three months0.00.00.00.00.00.0Next three months0.00.00.0-1.70.00.0How have maximum credit lines for OFCs changed?Past three months0.010.8-2.90.011.20.0Next three months0.00.07.70.00.00.0Footnotes* Data are unpublished for this question as too few responses were received.(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.

The methodology for calculating and interpreting the aggregate results is described in Annex 1. A full set of results is available in an Excel file in the ‘Related documents’ section.

Net percentage balances (a)

How has the availability of credit provided to the corporate sector overall changed?

of which: commercial real estate sector

How have commercial property prices affected credit availability to the commercial real estate sector, and/or secured lending to PNFCs?

Factors contributing to changes in credit availability: (b)

Market pressures from capital markets

Changing appetite for risk

Tight wholesale funding conditions

How has the availability of credit provided to small businesses changed?

How has the availability of credit provided to medium PNFCs changed?

How has the availability of credit provided to large PNFCs changed?

How has the proportion of loan applications from small businesses being approved changed?

How has the proportion of loan applications from medium PNFCs being approved changed?

How has the proportion of loan applications from large PNFCs being approved changed?

Has there been a change in average credit quality on newly arranged PNFC borrowing facilities? (c)

Has there been any change in ‘target hold’ levels associated with corporate lending?

How have loan tenors on new corporate loans changed? (d)

Has there been a change in draw-downs on committed lines by PNFCs?

How has the default rate on loans to small businesses changed?

How has the default rate on loans to medium PNFCs changed?

How has the default rate on loans to large PNFCs changed?

How has loss given default on loans to small businesses changed?

How has loss given default on loans to medium PNFCs changed?

How has loss given default on loans to large PNFCs changed?

How has demand for credit card lending from small businesses changed?

How has demand for other unsecured lending from small businesses changed?

How has demand for total unsecured lending from small businesses changed?

How has demand for secured lending from small businesses changed?

How has overall demand for lending from small businesses changed?

How has demand for lending from medium PNFCs changed?

How has demand for lending from large PNFCs changed?

How has demand for lending from OFCs (other financial corporations) changed?

What have been the main factors contributing to changes in demand for lending: (b)

How have spreads on loans to small businesses changed? (c)

How have fees/commissions on loans to small businesses changed?

How have collateral requirements for loans to small businesses changed?

How have maximum credit lines for small businesses changed?

How have loan covenants for small businesses changed?

How have spreads on loans to medium PNFCs changed?

How have fees/commissions on loans to medium PNFCs changed?

How have collateral requirements for loans to medium PNFCs changed?

How have maximum credit lines for medium PNFCs changed?

How have loan covenants for medium PNFCs changed?

How have spreads on loans to large PNFCs changed?

How have fees/commissions on loans to large PNFCs changed?

How have collateral requirements for loans to large PNFCs changed?

How have maximum credit lines for large PNFCs changed?

How have loan covenants for large PNFCs changed?

How have spreads on loans to OFCs changed?

How have fees/commissions on loans to OFCs changed?

How have collateral requirements for loans to OFCs changed?

How have maximum credit lines for OFCs changed?

* Data are unpublished for this question as too few responses were received.

(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.