Increasing spread between banks and other credit institutions charges for revolving loans
Consumer credit to households accelerates (+6.0 % in June 2018 after +5.5% in March). The acceleration is mainly due to instalment loans (+5.5 % after +5.0 % in March). The leasing growth, driven by car purchases, is still strong (+30.8 %) while the outstanding amount of revolving loans continues to decrease over the last year.
Since June 2016, the revolving credit rate has been almost stable at around 8.4%. This stability masks a divergence in level and evolution between the rates of banks and other credit institutions. The latter are higher and increase by 130 basis points on a yearly basis (12.2% in June 2016 to 13.5% in June 2018). The former decrease by 10 basis points (from 5.5% in June 2016 to 5.4% in June 2018). Banks market share is expanding in this segment.
Outstanding consumer credits to households
France, EUR billions, seasonally-adjusted
||Annual growth rate
|Total consumer credit to individuals
|o/w Installment loans (including securitised loans)
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, %
Distribution channels of revolving loans (excl. online banks and other types credit institutions)
France, share in the total outstanding amount of revolving credits
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
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 28, 2018