UHY International: Banks worldwide increased lending by 10% to help businesses through the pandemic

31 March, 2021   -   By Luisa Almazan

This post is also available in: Français (French)


Issued by UHY Victor : March 31, 2021


Banks worldwide increased lending by 10% to help businesses through the pandemic


  • Lending rises by $3.3 USD trillion across 24 major economies

  • More help is needed as countries enter renewed lockdown restrictions worldwide

  • China saw biggest increase in bank lending adding $1.8 trillion USD of business loans in just 12 months


Banks around the world have increased lending by 10% since the start of the Covid-19 pandemic to help businesses survive, reveals a new study by UHY, the international accounting and consultancy network*.


UHY’s study of 24 major economies shows banks increased overall lending to businesses by an additional $3.3 trillion USD in the last 12 months, as governments flood lending markets with money to help businesses through pandemic disruption. 


Lending to businesses across the 10 biggest economies reached a total of $32.7 trillion USD last year, an increase of $3.1 trillion USD (10.5%) compared to a year earlier.


Chinese businesses have experienced the largest increase in value of bank lending out of the world’s leading economies. In China alone, outstanding loans to businesses increased by USD1.8 trillion (11%), reaching a total of USD16.04 trillion last year.  The People’s Bank of China established its small business loans program in February, offering low-cost funds to commercial banks to lend to businesses. 


UHY’s study found that as well as China, other BRIC countries also experienced a particularly large increase in bank lending in the last year – a 12% increase on average. Brazilian banks increased their business lending by 18% ($46.3 billion USD), topping the table in UHY’s study with the largest percentage increase in lending. 


BRIC countries outpaced the G7 (9% growth in lending on average), as countries such as Canada saw a decrease in total lending to businesses through the pandemic (-0.3%). G7 countries added an extra $1.2 trillion USD to outstanding loans, reaching a total of $15 trillion USD last year. 


The eight major EU economies in UHY’s study are lagging behind other world economies in increasing lending, adding only 5% to outstanding bank lending last year. Outstanding lending stood at $4.9 trillion last year, up from $4.7 trillion USD in the previous 12 months. Countries including Poland (-3%) and Ireland (-7%) have seen a decrease in the value of outstanding bank credit to businesses compared to pre-Covid.  


Outstanding lending to businesses across the 10 biggest global economies hit a total of $32.7 trillion USD last year, an increase of $3.1 trillion USD (10.5%).


Banks have increased lending to businesses by 10%, adding $3.3 trillion USD to total outstanding loans in the last 12 months



*Current figures are outstanding loans to businesses at the last available date




Notes for Editors
To learn more about the services and capabilities UHY Victor LLP can offer, please contact Ken Shemie, Partner, at kshemie@uhyvictor.com.
About UHY Victor LLP
UHY Victor LLP is a member of UHY, an international network of independent accounting and consulting firms with offices in major business centres throughout the world. Further information can be found at uhyvictor.com.
UHY global press contact: Leigh Lyons on +44 20 7767 2624 
Email: l.lyons@uhy.com – www.uhy.com
Nick Mattison or Richard Crossan
Mattison Public Relations 
+44 20 7645 3631
+44 74 4637 5555
Email: richard.crossan@mattison.co.uk
About UHY 
Established in 1986 and based in London, UK, UHY is a leading network of independent audit, accounting, tax and consulting firms with offices in over 330 major business centres across 100 countries.
Our staff members, over 8,500 strong, are proud to be part of the 17th largest international accounting and consultancy network. Each member of UHY is a legally separate and independent firm. For further information on UHY please go to www.uhy.com. 
UHY is a member of the Forum of Firms, an association of international networks of accounting firms. For additional information on the Forum of Firms, visit www.forumoffirms.org

You might also like

08 July, 2021
By: Luisa Almazan

UHY Global: Issue 11

18 June, 2021
By: Luisa Almazan

UHY Capability Statement 2021

Share via
Copy link
Powered by Social Snap