Section 1: The provision of financial services

Table 1.A Selected payment systems(a) Sources: Bank of England, CLS Bank International, Euroclear UK & Ireland, UK Payments Administration and Bank calculations. (a) CLS data show the value and volume of obligations as submitted to CLS for settlement (effectively double the value/volume of the underlying transactions). CREST volumes and values are for sterling only and exclude flows generated by the self-collateralising repo mechanism. (b) Data to close of business on 29 October 2010.

Chart 1.1 Average percentage of sterling payments sent by CHAPS members by and 14.30(a) Sources: Bank of England and Bank calculations. (a) Five-day moving average (weighted by the value of payments sent). (b) CHAPS throughput guideline at (c) CHAPS throughput guideline at

Chart 1.2 Household and corporate deposit growth(a) Sources: Bank of England and Bank calculations. (a) Twelve-month growth rate. (b) Includes individuals, unincorporated businesses and non-profit institutions serving households.

Chart 1.3 Spreads on quoted household deposit rates(a) Sources: Bank of England and Bank calculations. (a) Quoted deposit rates minus three-month Libor.

Chart 1.4 Spreads on lending to households(a) Sources: Bank of England and Bank calculations. (a) Spread based on effective rate on variable-rate lending minus three-month Libor. Households are defined as individuals and individual trusts and unincorporated businesses (other than unlimited liability partnerships). ‘Secured credit’ is lending to individuals, individual trusts and housing associations. ‘Personal loans’ is lending to individuals only.

Chart 1.5 Changes in the availability of household credit(a) Source: Bank of England Credit Conditions Survey. (a)Net percentage balances are calculated by weighting together the responses of those lenders who answered the question as to how the availability of credit provided to the sector overall had changed in the past three months. A positive balance indicates that more credit is available.

Chart 1.6 Mortgage product availability Sources: Moneyfacts Group plc and Bank calculations.

Chart 1.7 Comparison of historical household lending spreads(a) Sources: Bank of England and Bank calculations. (a)Effective lending spreads on outstanding loans over three-month Libor. Households are defined as individuals and individual trusts and unincorporated UK businesses (other than unlimited liability partnerships). It is likely that the proportion of lending to unincorporated businesses within total household lending has increased in recent years. This is likely to have affected the personal loans series in particular, depressing current spreads relative to past levels.

Chart 1.8 Corporate lending costs by firm size(a) Source: Bank of England Credit Conditions Survey. (a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question as to how thecost of credit provided to the sector overall had changed in the past three months. A positive balance indicates reduced lending costs to businesses.

Table 1.B Issuance of corporate bonds and equity by PNFCs(a) Sources: Bank of England and Bank calculations. (a) Includes sterling and foreign currency issuance, non seasonally adjusted. Due to rounding, net issuance may not equal gross issuance minus repayments. (b) Includes stand alone and programme bonds.

Chart 1.9 Market functioning(a)(b) Sources: Bank of America Merrill Lynch, Bloomberg, Dealogic, JPMorgan Chase & Co. and Bank calculations. (a) Shading is based on a score that reflects, for unguaranteed debt, issuance (relative to GDP) and spreads in primary and secondary markets, expressed as a number of deviations from average. (b) Data to close of business on 30 November (c) Secondary market data for UK CMBS are insufficient to calculate scores.

Chart 1.10 Activity in exchange-traded derivatives markets(a) Source: BIS. (a) Turnover in the number of contracts. (b) Commodity contracts include both futures and options contracts. (c) Interest rate, currency and equity index derivatives on all exchanges.

Chart 1.11 CCP clearing of interest rate swaps and credit default swaps(a) Sources: ICE Clear Europe Ltd, ICE Trust (US) and LCH.Clearnet Ltd. (a) Open interest on derivatives at month end.