Sixty-two percent of European credit risk management professionals expect that consumers will request more credit during 2011, according to new research.

The European Credit Risk Survey, compiled by FICO, claims there will be a gap between supply and demand. While 62 per cent of respondents predicted that consumers will request more credit, only 47 per cent said that the credit available will increase. Seventeen per cent claimed it will decrease.

Across the continent, risk managers also believe there will be an improvement in delinquencies on auto loans and credit cards, while mortgage and small business loan delinquency could drop. The survey quizzed more than 100 credit-granting institutions from 32 European countries, including the UK, Germany, Austria and Spain.

On a banking level, 30 per cent of those polled said the Basel III reforms would cause consumer lending to decrease, and.....Read more from Credit Today