HC Deb 10 May 1983 vol 42 cc277-8W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the expansion of domestic credit each year since 1950 in terms of the pound sterling and as a percentage of the money supply at the beginning of the year.

Mr. Bruce-Gardyne

The following table gives the information requested. Statistics on domestic credit expansion have been compiled only since 1952. In calculating the ratio of DCE to the stock of money in the second column, £M3 is used as the measure of the money stock from 1963 onwards; before that date statistics on £M3 were not compiled, so M3 is used over the period 1952 to 1962. There is a minor break in the DCE series in 1964; from that date, the definition of DCE is that adopted in 1976, that is it consists of the domestic counterparts to £M3, plus the change in sterling bank lending to the overseas sector.

Domestic Credit Expansion
DCE* £ million DCE as a percentage of the money stock† (beginning-year total)
1952 51 0.6
1953 293 3.5
1954 342 3.9
1955 -92 -1.0
1956 75 0.9
1957 201 2.3
1958 103 1.1
1959 746 8.0
1960 385 3.9
1961 513 5.1
1962 275 2.7
1963 1,040 9.8
1964 1,508 13.2
1965 1,112 9.2
1966 713 5.5
1967 1,734 12.9
1968 1,979 13.4
1969 -226 -1.4
1970 742 4.6
1971 1,177 6.7
1972 6,691 33.3
1973 8,066 31.7
1974 6,926 21.6
1975 4,531 12.8
1976 7,480 19.9
1977 1,129 2.7
1978 8,096 17.9
1979 10,297 19.8
1980 15,582 26.6
1981 14,032 20.2
1982 16,667 21.1
* Before 1964 the DCE series includes banking sector lending to the private sector in foreign currency (excluding lending for investment overseas). Data up to 1981 are based on the banking sector; for 1982 it covers the expanded monetary sector.
† The definition of money stock used is: 1952 to 1963 —M3 (estimates based on a sample of banks); 1964 to 1982—£M3 (minor breaks in series at 1967, 1972, 1973 and 1975).