According to the sixth Credit Risk Survey released by global decision management services provider FICO and Efma, an industry association for European financial institutions, 71 percent of respondents have said that demonstrating a higher return on capital is another priority for 2013. The other highest priorities identified were using mobile channels (49 percent) and increasing capital to meet Basel requirements (just 40 percent, but 21 percent put it as a top priority).
The same source points out that, on the risk front, at least 40 percent of respondents expect delinquencies to rise in the next six months on mortgages, auto loans, credit cards, small business loans and overdrafts.
Data unveils that the biggest change in the credit demand and supply picture has occurred in the so-called credit gap between the percentages of respondents forecasting a rise in demand for credit versus a rise in supply. The credit gap forecast for small businesses has decreased sharply, to the lowest point in 2012, just 9 points. The respondents forecasting an increase in volume of credit requested by small businesses has declined from 37 to 35 percent, while those forecasting an increase in credit granted have increased from 16 to 26 percent. However, the credit gap forecast for consumer lending has grown to a full 20 points. Now, 35 percent of respondents predict a rise in the amount of credit requested by consumer, compared with just 15 percent who predict the amount granted will rise.
The survey has been conducted in 27 countries in September and October 2012 and indicates retail bankers risk management priorities for 2013.
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