The supply and demand of credit has become
more balanced across Europe as credit risk management professionals
indicate a growing optimism for credit performance in the
region.
The second European Credit Risk Survey –
conducted in May by FICO, analytics and decision management
technology provider, and Efma, promoters of innovation in retail
finance in Europe, surveyed credit risk management professionals
for their predications over the next six months.
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The results show changes in the relationship
between banks and borrowers with well over half the consumers (66%)
being more reluctant to using credit, and most being interested in
building their savings (79%). In the UK these numbers are
significantly higher with 85% of respondents claiming borrowers are
more reluctant to using unsecured credit/
A shift in borrower payment hierarchies has
also been observed, with more than 40% of respondents reporting
that consumers will pay their credit card bills ahead of other
obligations, including their mortgage.
Risk managers from Germany, however, remain
most optimistic in their delinquencies and credit supply outlook.
While those in Spain and Portugal are pessimistic, their attitude
has improved since the previous survey.
The credit gap for small businesses still
persists, yet the forecast is much smaller than what was seen in
the first European Credit Risk Survey.
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By GlobalData“Both the demand and supply forecasts [for
small businesses] are higher also,” said Mike Gordon, vice
president and managing director of FICO for Europe, the Middle East
and Africa.
