Friday08 November 2024
rating.net.ua

Banks anticipate a rise in loan demand and are likely to ease lending conditions.

Financial institutions anticipate that the quality of the loan portfolio may decline.
Банки прогнозируют рост спроса на кредиты и смягчение условий кредитования.

A recent survey conducted among banks revealed that in the third quarter, a record proportion of respondents forecasted an increase in business lending volumes over the next 12 months, marking the highest expectations since the beginning of 2022.

This information is mentioned in a report from the NBU.

It was noted that the demand for loans continued to rise: the population has been increasingly seeking loans for the third consecutive quarter, while business demand reached its highest levels since 2021. There was particularly strong interest in long-term loans in hryvnias for small and medium-sized enterprises (SMEs). Among the population, consumer loans were the most sought after, driven by improved consumer sentiment and declining interest rates. For the fourth quarter, banks predict further growth in demand for corporate and retail loans in hryvnias.

In the third quarter, banks relaxed credit standards for businesses for the first time since 2021, particularly for short-term and hryvnia loans, especially in the SME segment. Increased competition in the market also prompted financial institutions to lower requirements for consumer loans. This trend is expected to continue into the fourth quarter.

Banks reported a moderate increase in currency, credit, and operational risks in the third quarter, as well as a rise in interest rate risk. For the fourth quarter, financial institutions forecast an increase in all types of risks, including liquidity and credit risk, which will require additional measures for their control.

Background. Earlier, Mind reported that Ukrainian banks issued 701 mortgage loans in August 2024, totaling 1.2 billion UAH.