Indicates monthly or quarterly data series
| United Kingdom | Bank credit to the private sector as a percent of GDP |
|---|---|
| Latest value | 143.28 |
| Reference | 2020 |
| Measure | percent |
| Source | The World Bank |
For that indicator, we provide data for the United Kingdom from 1960 to 2020. The average value for the United Kingdom during that period was 83.78 percent with a minimum of 17.34 percent in 1960 and a maximum of 190.94 percent in 2009. The latest value from 2020 is 143.28 percent. For comparison, the world average in 2020 based on 156 countries is 58.71 percent. See the global rankings for that indicator or use the country comparator to compare trends over time.
Recent values
Longer historical series
Bank credit in the United Kingdom and other countries is defined as the credit extended by banking institutions to the private sector only: both firms and households. It does not include lending to the government.
Credit is essential for the economy to function well. It funds new investments and allows people to purchase houses, cars, and other items. Of course, excessive lending and borrowing usually end up in financial crises but, in principle, credit availability is good for economic development.
If the banking credit to the private sector is about 70 percent of the GDP and more, then the country has a relatively well-developed financial system. The amount of credit can even exceed 200 percent of GDP in some very advanced economies. In some poor countries, credit could be less than 15 percent of the GDP. In these countries, firms and households essentially do not have access to credit for investment and various purchases.
Definition: Domestic credit to the private sector by banks refers to financial resources provided to the private sector by other depository corporations (deposit-taking corporations except for central banks), such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment. For some countries, these claims include credit to public enterprises.