Banks expect further growth in business and household loan portfolios over the next 12 months, as well as increased demand for all types of loans.
This is according to the results of the Bank Lending Survey.
According to the survey results for the second quarter, banks continue to expect loan portfolios to grow, although the balances of responses regarding changes in lending volumes to businesses and households are at their lowest levels since the second quarter of 2023.
At the same time, business demand for all types of loans increased. In the third quarter, banks expect demand for all types of corporate loans to rise, particularly for long-term loans.
Household demand for loans also increased. Banks expect it to continue growing, particularly for mortgages.
According to the survey, the debt burden of businesses was moderate, while that of households was low.
Credit standards for the corporate sector remained broadly unchanged, although banks plan to ease standards for loans to SMEs in the third quarter.
The NBU noted that some banks reported higher approval rates for SME loan applications, as SMEs were able to obtain larger loans.
Financial institutions slightly eased credit standards for mortgages and consumer loans and expect further easing.
Approval rates for household loan applications also increased. Banks reported lower interest rates on consumer loans and mortgages.
“In the second quarter, credit, foreign exchange and liquidity risks increased, while foreign exchange and credit risks are expected to rise further in the next quarter,” the National Bank said.
