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Weak demand could explain subdued credit levels.
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The first is weakness in Western economies, which has led to elevated losses, subdued demand for credit and deleveraging by the banks themselves.
The demise of securitization and other derivatives and the return to basic banking lending prudently at profitable interest rates will reduce credit availability for years and subdue economic growth.
Demand for credit is subdued.
Philip Shaw, chief economist at Investec, explains: "Bank credit is subdued.
In the interview room, a subdued Anthony graciously gave credit where it was due, calling Hibbert's block "a hell of a defensive play" and the Pacers a "hell of a defensive team".
"Demand is subdued and therefore demand for credit is subdued," he said.
And demand for credit is horribly subdued.
The flow of bank credit to small businesses is subdued by capital charges that make it less lucrative for banks to lend to firms than against housing.
"Not only has the PBoC been sparing in doling out cash to the banks, but credit growth has remained fairly subdued – a stark contrast to 2009".
"It's a combination of the fact that consumer lending has been subdued for the last five years, together with forbearance on credit cards," said Mark Sands, of the insolvency experts, Baker Tilly.
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