Saturday, January 10, 2009

UK banks pull out of personal loan business

Here is some bad news for any D-list celebrity who had a nice little earner advertizing structured personal loans. UK Banks are pulling out. The total stock of this kind of credit fell throughout most of last year.


  1. oh dear, back to the afternoon quiz shows.

  2. OK, down from £67 billion to £65 billion.

    What are the comparatives for credit card debt, or for overall household borrowing (mortgage, personal loan, HP, store card, whatever)?

  3. Mark,

    In percentage terms, that fall is pretty steep - it is about 4 percent. If personal consumption fell by a similar amount, then a recession is guaranteed.


  4. A credit card balances chart, Alice?

  5. This doesn't talk about the duration of these kind of loans.

    If that is taken into account the drop in new lending is probably much sharper than is immediately apparent from this graph.

    There are inevitably two sides; the banks unwillingness to lend and the consumers new found avoidance of borrowing. Both have moved - welcome to the new equilibrium.