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More than a third of loans are paid back ahead of time, Mr. Gilbert said.
Bank of England figures suggest about a third of loans to finance private-equity-style deals in Europe are ultimately held through these kinds of securitised debt packages.
Although lenders insist payday loans are designed to be short-term products, and that APRs of more than 4,000% are not a fair reflection of the cost of borrowing, the OFT said almost a third of loans taken out in 2011/12 had been rolled over at least once, and these accounted for almost half lenders' revenues.
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They have half of Spain's deposits and two-fifths of loans, with much business grabbed from listed rivals.
By some estimates, one-third of loans are still doled out this way.
Two-thirds of loans were drawdown mortgages, while the rest were predominantly lump-sum.
In addition, about one-sixth of loans are at fixed rates for the first few years; of these mortgages, almost half are due to be switched to higher, variable rates in 1998.
And in India's state-dominated banking system one-fifth of loans are dud, according to Morgan Stanley, an investment bank.Nowhere has the political exploitation of banks been more brazen than in sub-Saharan Africa.
A banking meltdown would become a genuine possibility; concern has been mounting throughout the year over the fragile finances of major Italian banks and one-fifth of loans in the banking system are categorised as troubled.
Italian banks have amassed £290bn in bad loans – around 18% of all loans in the country and one third of bad loans in the euro area.
The deal valued the firm at $1.6 billion.As for the supply of capital, institutional investors now account for two-thirds of loan volumes.
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