UK bank credit to private sector, % of GDP
UK bank credit to private sector, % of GDP stood at 73 % of GDP in Q1 2026, according to Bank for International Settlements (BIS). It is one of the indicators in the Credit and debt burden table (Value · Quarterly), with a complete series running from Q1 1963 to Q1 2026. The complete series with an interactive chart, free to download.
This indicator in the Credit and debt burden table
| Indicator | Q1-2026 | Q4-2025 | Q3-2025 | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | Q4-2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Credit as a share of GDP | |||||||||||
| Private sector from domestic banks, % of GDP | 73 | 72.9 | 72.7 | 72.6 | 73 | 73.3 | 73.2 | 74.1 | 75.2 | 75.7 | |
| Non-financial sector total, % of GDP | 214.9 | 220.2 | 217.8 | 217.4 | 217.7 | 223.4 | 228.6 | 228.2 | 228.7 | 230.2 |
Understanding UK bank credit to private sector, % of GDP
Credit balances extended to non-financial corporations and households specifically by resident commercial banks in the United Kingdom are measured here relative to gross domestic product. Eligible instruments consist of direct overdrafts, business loans, mortgages, and credit facilities booked directly on domestic banking balance sheets. Debt funding sourced from foreign banks, capital market bond issuances, peer-to-peer platforms, and non-bank financial intermediaries is entirely excluded. This boundary separates traditional bank intermediation from total credit aggregates shown elsewhere in the table.
Evaluating this ratio highlights the extent to which private sector borrowing relies on domestic bank funding rather than market-based debt instruments. Shifts between sequential quarters can reflect domestic regulatory changes or adjustments to bank reporting definitions rather than fundamental shifts in borrower demand. Year-on-year tracking avoids distortions caused by seasonal quarterly bank balance sheet contractions and early national accounts revisions. Users should remember that corporate disintermediation—such as switching from bank credit lines to bond markets—lowers this series without reducing total private leverage.
Frequently asked questions
- Are debt securities issued by companies included in this domestic bank series?
- No, it focuses exclusively on credit extended directly by resident deposit-taking banks rather than corporate debt securities held by diverse investors.
- Does this ratio capture lending from foreign banks situated outside the country?
- Cross-border loans arranged directly through overseas banking offices are excluded from this resident banking metric.
- Why would this measure fall while overall private credit rises?
- A decline occurs if businesses or households substitute domestic bank facilities with market bond issuances, non-bank finance, or foreign borrowing.