Banks expect Ukrainians to take out loans more actively, including mortgages, and for the first time in a year, they anticipate an improvement in loan quality, according to the results of the NBU survey for Q2 2025, writes UNN.
Details
"Banks maintained optimism regarding the growth of loan portfolios for businesses and individuals and, for the first time in a year, expect an improvement in loan quality," the statement reads.
According to the survey, demand for business loans increased in Q2, particularly for long-term loans and loans to large enterprises—for the first time since the start of the full-scale invasion. Respondents predict an increase in demand for all types of business loans in Q3.
Household demand grew for both mortgages and consumer loans, and banks expect this trend to continue.
Most banks assessed the debt burden of businesses as moderate. At the same time, the share of banks that considered household indebtedness low decreased slightly.
For the first time since Q3 2024, banks eased lending standards for businesses, primarily due to increased competition.
Banks also eased lending standards for households for the fifth consecutive quarter: for consumer loans, competition between banks and non-bank financial institutions was a significant factor, while for mortgages, better real estate market prospects played a role.
Banks "plan to continue easing lending standards for businesses and individuals," the NBU reported.
The approval rate for applications increased slightly for both businesses and households. Banks relaxed collateral requirements for mortgages and, at the same time, increased the size of consumer loans.
Respondents noted a significant increase in credit risk and some increase in operational risk, but for the first time in two years, they did not record an increase in currency risk. In Q3, an increase in currency and credit risks is predicted, as well as some strengthening of liquidity risk.
For reference
The survey was conducted from June 16 to July 07, 2025, among bank credit managers. Responses were provided by 26 financial institutions, whose share in the total assets of the banking system is 96%. The survey results reflect the opinions of the respondents and are not assessments or forecasts of the National Bank of Ukraine. The survey regarding expectations in Q4 will be published in October.