Banks relaxed the requirements for loans to the population for the first time since the fourth quarter of 2021 — NBU
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Banks have improved their expectations regarding lending prospects: the share of respondents expecting growth in business lending volumes has returned to the pre-war level. This is evidenced by the results of the quarterly survey of banks on lending conditions conducted by the NBU, the press service of the regulator reports.
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“The demand for corporate loans in the first quarter increased the need for working capital, but the change in interest rates restrained it. In the second quarter, banks expect growth in demand for all types of business loans. Most of all – for small and medium business loans, short-term and hryvnia credits,” the message says.
At the same time, banks are also predicting growth in demand for retail loans, especially for mortgages.
At the same time, bankers do not expect a deterioration in the quality of corporate loans over the next 12 months, but the quality of loans issued to households will deteriorate somewhat.
In the first quarter, banks tightened corporate lending standards. Most of all — for long-term and currency loans. Strengthening of standards is predicted in the II quarter and beyond. Mostly for large enterprises and long-term loans. At the same time, financial institutions plan to slightly weaken credit standards for SMEs.
Easing of credit standards for the population
For the first time since the 4th quarter of 2021, banks relaxed the standards of loans to the population. Mostly for consumer loans. This was facilitated by the improvement of the expected economic activity, the best exchange rate expectations and the growth of the solvency of the population.
Read also: In 2022, mortgage lending fell 5.3 times — NBU
Mortgage standards have softened due to increased bank competition and lower inflationary expectations. In the next quarter, respondents plan to soften credit standards for consumer loans, and for mortgages to strengthen them.
In the first quarter, respondents noted the growth of all types of risks, except for liquidity. Liquidity risk is decreasing for the second quarter in a row. In the II quarter, banks expect an increase in all types of risks without exception.
Survey
“Survey on the conditions of bank lending” was conducted from March 17 to April 7, 2023 among bank credit managers. Answers were given by 26 financial institutions, the share of which in the total volume of assets of the banking system is 96%.
Author: 
News editor Roman Myronchuk writes on the following topics: Economy, finance, banks, cryptocurrencies, investments, technologies
Source: Ministry of Finance
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