Banks expect Ukrainians to take out loans more actively, including mortgages - NBU
Kyiv • UNN
The NBU reports that banks expect an increase in demand for all types of loans over the next 12 months. Growth is also forecast for mortgages for households.
Banks expect further growth in credit portfolios for businesses and households, with mortgages being the main driver among households. This is evidenced by the results of a new NBU survey on bank lending conditions, reports UNN.
Banks expect further growth in credit portfolios for businesses and households over the next 12 months and an increase in demand for all types of loans
According to the NBU, the key findings for the second quarter are as follows:
- banks continue to expect growth in credit portfolios, but the balance of responses regarding changes in lending volumes to businesses and households is the lowest since the second quarter of 2023;
- business demand for all types of loans increased, and in the third quarter, banks expect an increase in demand for all types of corporate loans, especially long-term ones;
- household demand for loans also increased, and banks expect it to grow further, mainly for mortgages;
- the debt burden of enterprises was moderate, while that of households was low;
- credit standards for the corporate sector generally remained unchanged, but in the third quarter, banks plan to ease standards for SME loans;
- some banks reported an increase in the approval rate for SME loan applications, as they were able to attract larger loan amounts;
- financial institutions slightly eased credit standards for mortgages and consumer loans and expect further easing;
- the approval rate for household loan applications increased, and banks noted a decrease in interest rates for consumer loans and mortgages;
- in the second quarter, credit risk, currency risk, and liquidity risk increased; in the next quarter, currency and credit risks are expected to intensify.