NBU: Banks seek to mitigate credit conditions

НБУ: Банки намерены смягчить условия кредитования

In the second quarter, banks have tightened lending standards in anticipation of the deterioration of the creditworthiness of borrowers

The surveyed bankers expect that in the current quarter restored the demand for loans from both population and business.

Conditions of lending to households and businesses softened in the third quarter. This was announced by the national Bank with reference to the results of their own survey of credit managers of banks.

The surveyed bankers expect that in the current quarter restored the demand for loans from both population and business, noted in the NBU.

In April-June demand for business loans was almost unchanged in comparison with January-March. The demand for loans in the second quarter declined compared to the first quarter.

The reason is the deterioration of consumer sentiment and reduced spending on durable goods. In these circumstances, interest in lending was supported by low interest rates on loans.

However, in the second quarter, banks have tightened lending standards in anticipation of the deterioration of the creditworthiness of borrowers.

“The peak of the negative expectations of banks was passed in the last quarter, and in the current survey the expectations of the banks for the next 12 months began to improve. Almost 60% of respondents expects an increase in the loan portfolio in the next 12 months, which is twice more than in the previous survey,” — noted in the NBU.

The survey was conducted from June 18 to July 9 among credit managers of 24 banks, whose share in the total assets of the banking system is 91%.

As reported, the Verkhovna Rada at a meeting on 16 July was extended until 2022 prohibition on collection of property by foreign currency loans. The action of the corresponding law extended to the adoption of a separate document, which will regulate the issue of restructuring of debts on foreign currency loans and the order of foreclosure on the mortgage assets.

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