1. Market Research
  2. > Financial Services
  3. > Banking Market Trends
  4. > Bank Lending

Credit & Loan Business: Complete Sector Overview

  • Currently 4/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
7 votes

Credit and Loans Market Analysis

Credit and loans are the two main forms of borrowing or debt (and account for a large slice of the banking industry revenues). Credit is a contractual agreement whereby the borrower receives something of value from the lender, agreeing to repay at an agreed future time. Generally they are short term and unsecured. A loan is an arrangement in which the borrower receives money with an agreement to repay the principal amount along with interest in calculated installments. Loans are generally long term and are often secured against assets to cover the risk of default on repayment. However, in practice these terms overlap.

Key Segments

There are two forms of credit generally available:

Credit Cards: A credit card is the most widely used form of credit. For instance, in the USA alone, cards like MasterCard, Visa and Discover generate about $2 trillion per year through credit spending.

Hire Purchase: Through a hire purchase system the buyer pays for a product in regular installments while having the use of it. However, ownership passes to the buyer only upon the full repayment of the hire purchase facility.

Widely used loans include:

Auto loans: Loans to finance vehicle purchases are available from banks, captives (manufacturers’ financial business arms), credit unions and finance companies. With the increase in captives, the finance business has become an integral part of the automotive industry. Europe and the USA are the two largest markets for auto finance.

Corporate loans are used to fund capital expenditures for businesses. Bank finance and equity financing are the ways to meet capital for businesses. In Europe banks play a major role in corporate financing through business loans.

Mortgages: These secured loans, borrowed by individuals or businesses to finance their real estate purchases, are a highly regulated market. The global residential mortgage market is a huge business and is expected to rise to $31 trillion in outstanding balances  in the near future.

There are various other forms of loans and credit including student loans, personal loans, flexi loans, and micro finance.

Regional Market Shares

The USA and Europe are the two largest and most advanced loan markets:

The USA: In the years since the financial crisis of 2008, the US’s banking industry overall has benefited from steady growth in loans. Mortgage debt in the USA amounts to more than $13 trillion in outstanding loans. Consumer credit is also an important segment of lending in the USA where consumer debt amounts to about $11 trillion.  Bank of America, Wells Fargo and JPMorgan Chase are some of the largest providers of credit and loans in the country.

Europe: Most businesses in Europe rely on bank loans for their financing. Borrowing through banks accounts for about 80% of corporate finance in this region. Consumer credit is also huge in Europe. With more than € 1 trillion in outstanding loans, the European Union accounts for a quarter of the global credit market. HSBC Holdings, Deutsche Bank and ING Group are some of the largest credit and loan lenders in Europe.

Read more »

You might be interested in these related markets:

Customer Support

Talk to Sam

+33 4 37 65 17 06

94 Reports
Company Financials, Demand, Company
52 Statistics
Finance, Company Financials, Market Size
2800 Reports
Company Financials, Demand, National Accounts
100 Statistics
Finance, Company Financials, Market Size
74 Reports
Demand, Company Financials, Market Size
91 Statistics
Finance, Company Financials, Company
48 Reports
Company Financials, Demand, Company
42 Statistics
Finance, Company Financials, Company
280 Reports
Demand, Company Financials, Market Size
55 Statistics
Finance, Company Financials, Market Size
95 Reports
Company Financials, Company, Demand
16 Statistics
Finance, Company Financials, Company
140 Reports
Company Financials, Demand, Company
25 Statistics
Finance, Company Financials, Company
210 Reports
Company Financials, Company, Market Size
15 Statistics
Finance, Company Financials, Company
13 Reports
Company Financials, Demand, Company
15 Statistics
Finance, Company Financials, Market Size
44 Reports
Company Financials, Demand, Company
36 Statistics
Finance, Company Financials, Company
Search in Bank Lending Industry (About 18000 reports)
Parent industry: Banking
Related industries: Retail Banking, Private Banking, Payments

About 300 reports

Purchase Reports From Reputable Market Research Publishers

Debt Collection Software Market by Component, Organization Size, Deployment Type, User Type And Region - Global Forecast to 2024

Debt Collection Software Market by Component, Organization Size, Deployment Type, User Type And Region - Global Forecast to 2024

  • € 5044
  • Industry report
  • August 2019

Growing demand for automation and self-service payment models to improve the collection process are expected to drive the growth of the debt collection software marketThe global debt collection software ...

Forensic Audit Global Market Opportunities And Strategi ... € 3508 October 2019

Spain Retail Banking: Opportunities and Risks to 2023 € 1754 October 2019

China Retail Banking: Opportunities and Risks to 2023 € 1754 October 2019

Consumer Lending in Israel € 1675 October 2019

Consumer Lending in Taiwan € 1675 October 2019

Consumer Lending in Japan € 1675 October 2019

Consumer Lending in Morocco € 1675 October 2019

Consumer Lending in Russia € 1675 October 2019

Consumer Lending in the US € 1675 October 2019


Reportlinker.com © Copyright 2019. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on