BoE publishes Q2 Credit Conditions and Bank Liabilities Surveys

The BoE has published the results from its quarterly survey of banks and building societies looking at credit conditions in the quarter to the end of May 2024. As usual, the survey covers:

  • secured and unsecured lending to households; and
  • lending to non-financial corporations, small businesses and non-bank financial firms

Overall, lenders reported little or no change in the availability of secured or unsecured credit to households, with no expectation for change over the next quarter. Overall availability of credit to corporates was also unchanged although there had been an increase in availability for SMEs.

Demand for secured and unsecured household lending, including credit card lending, had increased, while demand from corporates was unchanged. Only small changes are expected in the next quarter.

Overall spreads were either unchanged or had widened, with some small increases expected.

Meanwhile, the quarterly survey on bank liabilities for the same period shows an overall increase in total funding volumes, with a further increase expected in the next quarter. The main increase was in retail deposit funding. Overall supplies of deposits increased as did demand for wholesale bank debt from both UK and non-UK investors. Total capital levels are also expected to increase in the next quarter.

Emma Radmore