NBU polls: banks expect revival of lending

Submitted by bashun on Wed, 05/02/2018 - 14:02

In the next 12 months Ukrainian banks expect a revival of lending to both business and the public and are hoping to reduce credit, interest and currency risks in the second quarter of 2018.

This is stated by the results of a survey of the National Bank of Ukraine (NBU), biz.nv.ua reported.

The most optimistic expectations relate to corporate lending - 76% of the banks surveyed expect an increase in the loan portfolio of the business, an increase in loans to individuals - 69%.

In the first quarter banks actively approved applications for loans to small and medium-sized enterprises and consumer loans than a quarter earlier.

It is noted that the revival of lending was influenced by the decrease in interest rates by banks and lengthening the terms of lending.

Increased competition between banks and non-banking institutions, as well as economic growth and lower inflation expectations, led to a softening of requirements of small banks for borrowers - individuals in the first quarter. At the same time, first of all, large banks increased the requirements for collateral for business loans, and also strengthened the restrictions imposed on loan agreements, especially for large enterprises.

Several large banks also reported an increase in demand for mortgage loans. In the second quarter, banks do not plan to mitigate lending standards for large enterprises, but they provide for a softening of conditions for SME lending, short-term and hryvnia loans. The same applies to consumer lending.

It is also expected that the credit, interest and currency risks will decline in the second quarter. Respondents predict that the liquidity risk will not change, while the operating one will increase somewhat.


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