Ukrainian banks are optimistic about the growth of lending and expect an improvement in the quality of loans issued for the first time in a year. This is evidenced by the results of the next Survey on Bank Lending Conditions, conducted by the National Bank of Ukraine.In the second quarter of this year, businesses showed increased interest in loans, especially long-term loans and financing of large companies. This happened for the first time since the start of a full-scale war. Banks predict further growth in demand for all types of corporate lending in the third quarter.Ukrainians also began to borrow more actively.
Demand has increased for both mortgage and consumer loans, and banks expect this trend to continue. At the same time, financial institutions are gradually easing lending conditions — for both businesses and individuals. In the case of corporate clients, the main factor in this was growing competition, and in the retail segment — the activity of both banks and non-bank lenders, as well as improving prospects for the housing market.Most banks assessed the level of business debt as average, while the number of institutions that consider household debt to be low decreased slightly. At the same time, the level of approval of applications increased, both corporate and retail. Banks relaxed collateral requirements for mortgage loans and increased the average size of consumer loans.Despite positive expectations, banks are recording an increase in credit risk, as well as a noticeable increase in operational risks. For the first time in the last two years, there was no increase in currency risk, although it is expected to increase in the next quarter along with credit and liquidity risks.
Source: https://fintechinsider.com.ua/banky-prognozuyut-aktyvnishe-kredytuvannya-biznesu-j-naselennya-naczbank/
