Still buoyant growth in consumer credit
In spite of a deceleration, consumer credit to individuals in France continued to grow at a rapid pace, at +4.7% in June 2017, after +5.8% in March. This increase was driven by installment loans (+6.1%) and by leases (+25.3%, primarily financing automobiles). Conversely, revolving loans continued to decline.
In the second quarter, consumer credit to households increased at a slightly lower pace in France than in the euro area (+5.2% versus +5.9% at the end of June 2017). In France, interest rates on installment loans decreased by 20 base points during the second quarter of 2017, while they rose by 7 base points in the euro area.
Changes in outstanding consumer credit to individuals
France, EUR billions, seasonally-adjusted
||Annual growth rate (2017)
|Total consumer credit to individuals
|o/w Installment loans (including securitised loans)
Annual growth in consumer credit to households
Annual growth rate in %, incl. securitized loans for France, excl. securitized loans for the other countries and the euro area
Interest rate (narrowly-defined) on new revolving loans by type of credit institution, France, %
Interest rate (narrowly defined) on new revolving loans and overdrafts by country, %
Average interest (narrowly-defined) rate on new installment loans, %
Average fees on new installment loans (narrowly defined), %
Distribution channels of revolving loans (excl. online banks and other types credit institutions)
France, share in the total outstanding amount of revolving credits
The total outstanding amount of consumer credit to individuals includes the outstanding amount of securitised loans. Besides the specified or unspecified personal loans, the ordinary overdrafts and revolving loans, it includes installment loans, leases and credit card loans. Since December 2014, hire-purchase sales and specific-purpose personal loans are grouped together. These amounts are adjusted for seasonal variations.
Households consist of individuals and sole traders. Given that there are no European data solely on outstanding amounts of loans to individuals, the comparison of credit growth is made on the basis of households.
The average interest rates by country for revolving loans and overdrafts also include credit card loans and cover new loans to households and non-profit institutions serving households (NPISH).
The interest rates for installment loans to households and NPISH relates to new contracts, at fixed rates only for the United-Kingdom, at all rates for France and euro area. The average fees are obtained by calculating the difference between the annual percentage rate of charge (APRC) and the narrowly defined effective rate (NDER) on new personal loans to households and NPISH. The market shares of the different types of distributor network are calculated using the outstanding amount of revolving credit to individuals.
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Published on Friday, September 22, 2017