All you need to know
BOE Data on Credit Facilities to companies
Credit Facilities (more specifically reported as Committed or Unused Credit Facilities) track potential future credit supply and liquidity buffers 1, 2 .
Referenced internet pages dealing with BOE (Bank of England)on-line information:
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Definition
These are legally binding credit agreements granted by UK MFIs where the borrowing limit has been formally established, but the customer has not yet drawn down the funds 1, 4 . -
Components
- Undrawn revolving credit lines.
- Undrawn overdraft limits.
- Committed syndicated or bilateral corporate lending facilities 3 .
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Statistical Limitations
Unused credit card limits are generally excluded from these specific tables due to reporting complexities across various banks 1. -
Economic Significance
Tracking unused facilities helps the BoE gauge corporate liquidity. For example, during economic stresses (such as a crisis), companies will often draw down existing credit facilities to secure cash, causing a sharp drop in “unused credit facilities” and a corresponding spike in “loans” 4.
Referenced internet pages dealing with BOE (Bank of England)on-line information:
- 1 – BOE – Further details about liquid assets (from : www.bankofengland.co.uk)
- 2 – BIS – Lessons from Covid-19 pandemic on Basel reforms (from : www.bis.org)
- 3 – Financial Stability Report – July 2025 (from : www.publicnow.com)
- 4 – Effects of changes in regulation on UK Bank Credit