UK banks tighten credit

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

A net balance of 18.8% 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% 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.