Deloitte Monday Briefing: Living With Less Credit

The Monday Briefing, written by Ian Stewart, Deloitte's Chief Economist in the UK, gives a personal view on topical financial and economic issues.

• The global financial crisis turned a long credit boom into a credit famine. It looks as if corporates and consumers in many western countries will have to get by for years to come on a much reduced supply of bank lending.
• The most leveraged banks, and those with the greatest dependence on wholesale finance, were more vulnerable, and saw larger declines in share prices during the financial crisis.
• Banks, like consumers, corporates and governments, have sought to strengthen their position and protect themselves from uncertainty by reducing debt levels. One way of doing so is by cutting lending to households and businesses.