credit starvation

It is strange fact, but despite the financial crisis, UK credit is growing at its fastest rate for a decade.

However, if credit to the shadow banking sector is excluded, the growth rate falls to around 4 percent. In the chart above, the shadow banking sector, takes the rather more obscure title of intermediate other financial institutions (OFCs). While the rest of the economy is starved of loans, the shadow banking sector has a seemingly insatiable appetite.