Assets and Liabilities of Finance Houses and Other Credit Companies. 2 nd Quarter 2009

Assets and Liabilities of Finance

Houses and Other Credit

Companies

2

nd

Quarter 200

9

Coverage

:

UK

Theme

:

Economy

A National Statistics publication

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Contents

Page Number

Definitions

and

Notes

3

Table

1

Assets

of

Finance

Houses

4

Table

2

Liabilities

of

Finance

Houses

6

Definitions

Other Loans and Advances

- All credit agreements with companies as well as all agreements

entered into before 1 April 1977 and up to the end of 1990 those for more than £15,000 (£5,000

before 20 May 1985) with individuals (including unincorporated businesses). From the first

quarter of 1991 all credit agreements with companies and any agreements with individuals

entered into before 1 April 1977.

Regulated Consumer Credit

- Consumer credit agreements regulated under the Consumer Act

1974 and its associated orders and regulations. They comprise non-exempt agreements from 1

April 1977 which involve the provision of credit not exceeding £15,000 (£5,000 before 20 May

1985). This limit was removed with effect from the first quarter of 1991.

Financial institutions -

These are insurance companies, non-deposit-taking finance houses,

building societies, investment trusts, unit trusts, pension funds, finance leasing companies,

factoring companies, property unit trusts and miscellaneous financial institutions, including

bank-like and unit trust-bank-like funds in the Channel Islands and the Isle of Man, gold dealers and special

finance agencies such as the Agricultural Mortgage Corporation.

Banking sector -

All references to the monetary sector describe the position from the beginning

of 1982.

Symbols

-

Nil or less than £0.5m

Notes to tables

This monitor is compiled from returns submitted to National Statistics by finance houses in Great

Britain. The tables are based on the results of the ‘benchmark’ inquiry to all consumer credit

grantors in 1976. The figures include finance houses, check traders, moneylenders and other

specialist consumer credit granting companies with head offices in Great Britain. They exclude

institutions authorised under the Banking Act 1987 (which form the banking sector), retailers,

building societies and insurance companies.

From the beginning of 1991, amounts outstanding on loans and advances to consumers include all

consumer credit agreements, not just regulated agreements.

1

ASSETS OF FINANCE HOUSES

£ million Holdings Net Acquisitions

2007 2008 2007 2008 2008 2008 2008 2009 2009

Q2 Q3 Q4 Q1 Q2

Cash in hand and balances with UK banking sector AGRB 1 998 1 977 AGSB −97 −19 48 −69 −4 −19 −19

Amounts outstanding on loans and advances (including those to other group companies)

on agreements block discounted by

retailers and financial institutions AGRI − − AGSI − − − − − − −

on finance leases AGRP 1 171 1 305 AGSP −28 135 75 60 −19 −100 −130

on regulated consumer credit agreements1 VAAM 48 880 49 659 VAAO 2 698 779 306 486 −32 −818 −847

on other loans and advances

to individuals (including unincorporated

businesses) VAAL 485 490 VAAN 18 5 19 −3 −18 −16 −32

to UK industrial and commercial companies AGRL 5 705 5 237 AGSL 601 −470 11 12 −34 −38 −1

Other current assets

Cer tificates of deposit, promissory notes and any other negotiable paper issued by

UK banking sector AGRC 7 7 AGSC − − − − − − −

Other current assets (including items in suspense and debit items in course of collection, and any other short-ter m

assets not included under previous headings) AGRD 639 685 AGSD 90 46 1 13 −1 15 −7

Real assets in UK for own use

1

ASSETS OF FINANCE HOUSES

continued £ million

Holdings Net Acquisitions

2007 2008 2007 2008 2008 2008 2008 2009 2009

Q2 Q3 Q4 Q1 Q2

Company and government securities (including

investment in other group companies) AGRN − − AGSN − − − − − − −

Other assets AGRO − − AGSO − − − − − − −

Total assets AGRA 58 921 59 395 AGSA 3 285 475 460 499 −108 −977 −1 037

1 The series are affected by the reclassification of business between the banking and other spe-cialist lenders sectors.

2

LIABILITIES OF FINANCE HOUSES

£ million

Holdings1 Net acquisitions

2007 2008 2007 2008 2008 2008 2008 2009 2009

Q2 Q3 Q4 Q1 Q2

Borrowing (including deposits by and borrowing from other group companies)

Promissor y notes, commercial bills and

any other negotiable paper issued AGRQ 3 477 3 416 AGSQ 176 −61 −28 −62 93 −34 −55

Shor t-term borrowing from UK banking

sector (excluding deposits)1 AGRR 10 669 11 031 AGSR 1 810 363 402 107 84 −222 −422

Deposits and medium and long-term

borrowing from UK banking sector1 AGRS 14 290 14 753 AGSS 1 368 463 355 153 38 −201 −161

Borrowing from other UK financial

institutions AGRT − − AGST − − − − − − −

Other borrowing

UK AGRU − − AGSU − − − − − − −

Overseas AGRV 19 24 AGSV −3 5 2 2 −2 − −

Other current liabilities (including items in suspense and credit items in course of transmission, and any other short ter m liabilities not

included under previous headings) AGRW 825 746 AGSW 26 −79 −38 14 −27 −14 −12

Issued capital (ordinary and preference

shares, debentures and loan stock) AGRX 27 079 26 998 AGSX −147 −82 −88 252 −271 −265 −358

Reser ves and provisions (including any liabilities not included under

previous headings) AGRY 2 562 2 427 AGSY 55 −134 −145 33 −23 −241 −29