The UK houses some of the world’s largest CCPs. For example, LCH in London clears swaps in 18 currencies for firms in 55 jurisdictions, handling over 90% of cleared interest rate swaps globally and 98% of all cleared swaps in euros. All currencies, products and counterparties benefit from the resulting economies of scale and scope. Fragmentation of such global markets by jurisdiction or currency would reduce the benefits of central clearing. EU27 firms account for only a quarter of global activity in cleared euro interest rate swaps, and about 14% of total interest rate swaps in all currencies cleared by LCH. Any development which prevented EU27 firms from continuing to clear trades in the UK would split liquidity between a less liquid onshore market for EU firms and a more liquid offshore market for everyone else. 11  All speeches are available online at www.bankofengland.co.uk/speeches  11  The potential for higher costs is not theoretical. In Japan, for example, where the clearing of yendenominated swaps by certain Japanese firms must take place onshore, the difference in price between the onshore and offshore markets has generally been in the range of 1-3 basis points. Such seemingly small price differences translate into significant costs for users given the scale of activity in these markets. Industry estimates suggest that a single basis point increase in the cost resulting from splitting clearing of interest rate swaps could cost EU firms € per year across all of their business.
International Capital Flows in the Post-crisis World, September 2019 CENTRAL BANK OF CHILE  Non-bank lenders  Household debt issued by NBLs has increased as a share of total consumer debt  15  Retailers CCAFs NBLs  13  Real annual growth of loans  Nonbank credit (*)  (real annual change, percent)  (percent of bank consumer loans)  Car dealerships S&Ls  F&Ls Bank  60  Retailers  Car dealerships  F&Ls  CCAFs  S&Ls  50  11 9  40  7 5  30  3 20  1 -1  10  -3 -5  0 13  14  15  16  17  18  13  14  15  16  17  18  (*) Based on individual financial statements, including for bank consumer credit, which is used as the denominator. Source: Central Bank of Chile based on data from the SBIF, CMF and Suseso. The steady growth of the nonbank portfolio is a potential source of vulnerability, given that most of these lenders are outside the consolidated debt perimeter. In terms of arrears in the nonbank consumer portfolio, retailers recorded a slight improvement relative to end-2018, to 3.8%. In contrast, for the CCAFs, delinquency has increased steadily since 2013—when they began to use accounting criteria more similar to the banks—and it is currently more than double the rates for the rest of the nonbank consumer lenders.