In the first six months of 2004 consumers borrowed 5.1 billion euro in consumer credit. This is not even half a percent more than during the first six months of 2003. So Dutch people remain reticent when it comes to borrowing. There is also barely a change in the negative balance on current bank accounts: the monthly average varied around 6 billion euro in the red.
Main lenders are banks and credit card companies
Mainly households get consumer loans from banks and credit card companies, which provide 62 percent of the total amount of credit supplied during the first six months of 2004. Other major credit providers are financing companies, which supplied one third.
Market share in credit supplied during the first six months of 2004
Growing importance of banks and credit card companies
The market share of banks and credit card companies in supplying credit has been growing since 1999. This is partly because of the popularity of credit card credit. In the first six months of 2004 credit card credit was up by 13 percent on the same period in 2003. The importance of bank and credit card companies in revolving credit is also on the increase. Over half of revolving credit supplied in the first six months of 2004 was provided by banks, an 8 percent increase compared with the amount provided during the first six months of 2003. Financing companies supplied 10 percent less in revolving credit.
Credit granted by type of credit, first six months
Over 17 billion euro in debt
The amount households still have outstanding in consumer loans, including interest and costs, was 17.2 billion euro by the end of June 2004. Half of this amount must be paid to banks and credit card companies and 46 percent to financing institutions. Furthermore households were 6 billion euro in the red.
Market share of outstanding debt, first six months of 2004
The differences in the market shares between the two groups of credit suppliers are smaller for outstanding debts than for credit granted. This is caused by the terms of the credit granted. Banks and credit card companies provide more short-term credit than financing companies. Credit card credit on average has a term of just over four months; revolving credits have an average term of about 20 months.
Elma van Agtmaal-Wobma