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In recent years, the proportion of lending accounted for by fixed-rate deals has persisted at levels well above those prevailing before the financial crisis.
A senior British banking regulator says that in telecoms, for example, in America a high proportion of lending is now to non-investment-grade companies, though for the moment most of British banks' lending is still to investment-grade borrowers.
Regional figures show small and medium businesses outside London received a larger proportion of lending than their share of SME turnover, with the north-west receiving 11% and accounting for 10% of turnover, while the south-west and West Midlands each accounted for 7% of turnover and borrowed 11%and9%9% respectively.
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So the idea of lending to all of them, in proportion to the size of their accumulated debts, sounds like a stupid proposition.But that is what bond indices do.
A new revelation of lending fraud?
Buy to let as a proportion of total lending remained at around 17% but still makes up a larger portion of total lending compared to the same time last year".
With more new loans on the books, bad loans have shrunk as a proportion of overall lending.
The proportion of their lending that is in commercial real estate has nearly doubled in the last six years, according to government data.
Meanwhile, the proportion of new lending at a high loan-to-value (LTV) – more than 90% – has averaged at about 2% over the past year, but fell back in the first three months of 2011 to 1.7%.
WALL STREET JOURNAL In Spain, More Bad Loans | The amount of soured loans as a proportion of total lending in Spain increased to 8.37 percent in March, the highest level since August 1994, according to data from the Bank of Spain, Bloomberg News reports.
Similarly, the proportion of new lending done at a high loan-to-value and high income multiple – defined by the FSA as more than 3.5 times a single borrower's income or 2.75 times joint borrowers' earnings – which accounted for almost 9% of new lending two years ago, made up less than 1% of new lending in the final quarter of last year.
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