Since then, a number of structural forces have probably pulled down the ‘equilibrium’ level of global and domestic real interest rates, making this a conservative calculation. See, for example, Vlieghe (2016) ‘Debt, Demographics and the Distribution of Income’ http://www.bankofengland.co.uk/publications/Pages/speeches/2016/872.aspx 8 This point was made back in 2012 by my colleague Ben Broadbent. See Broadbent, B. (2012) ‘Deleveraging’, remarks given at Market News International, London, on 15 March 2012. http://www.bankofengland.co.uk/archive/Documents/historicpubs/speeches/2012/speech553.pdf  9  All speeches are available online at www.bankofengland.co.uk/speeches  9  Lenders’ own assessments of how risky these loans are, which they use to calculate how much capital they need to withstand losses, have fallen. Over the past two years, these ‘risk weights’ on credit card loans have fallen by 7% and those on other consumer loans by 15% (Chart 11). This improved performance doesn’t reflect a tightening up of lending standards. Credit scores of new borrowers are actually a little lower than they were 2 years ago (Chart 12). Instead, the improved performance of borrowers reflects the environment of continued employment growth and easier credit terms. Lenders have been the lucky beneficiaries of the benign way the economy has evolved. In expanding the supply of credit, they may be placing undue weight on the recent performance of credit cards and loans in benign conditions. Car finance  Car finance has drawn particular attention, with growth of 15% in the past year and more than 100% in the past 4 years. The way we buy cars has been transformed.
Source: Bank of England 2017 Q2 Credit Conditions Survey (CCS). (a) A positive balance indicates that the changes in the factors described have served to increase credit availability. (b) Question: ‘How have the following factors affected overall secured credit availability to households over the latest three months relative to the previous three months?’ The chart shows responses to the option 'market share objectives'. (c) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question by their market shares. Chart 17. Proportion of new mortgages with (a) no fees  Chart 18. Loan to income distribution of new (a) mortgage lending  Per cent  Proportion of £ fee new mortgages  50 45 40 35  30 25 20 15 10 5 0 2011  12  13  14  15  16  17  Sources: Moneyfacts and Bank calculations. (a) The proportion of £ fee products in each year is calculated relative to the total number of new mortgages offered during the year. The proportion in 2017 is calculated based on data from January to April 2017. Sources: FCA Product Sales Database and Bank calculations. (a) The Product Sales Database includes regulated mortgages only. 21  All speeches are available online at www.bankofengland.co.uk/speeches  21  Chart 19. Major UK banks’ capital ratios  Chart 20.