Banks in Ukraine are noting an increase in demand for loans from businesses and individuals. This trend is expected to continue, with the loan portfolio volumes for both corporations and households set to grow in the next 12 months. This is supported by data from a survey conducted by the National Bank regarding the conditions of bank lending.
This is reported by Finway
According to the survey results, in the first quarter, demand for corporate loans increased, particularly for hryvnia loans. In the second quarter, respondents predict further growth in demand for all types of business loans. Demand for loans from individuals is also showing positive dynamics. Some large financial institutions have reported an increase in requests for mortgage lending, leading to the highest level of positive responses since the onset of the full-scale aggression by the Russian Federation.
Expectations for Growth in Demand for Mortgages and Consumer Loans
A significant portion of respondents predicts further growth in demand for mortgages and consumer loans. It is also noted that the debt burden on businesses has remained at an average level, while household indebtedness remains low.
Changes in Lending Conditions
According to the survey data, banks have slightly eased lending conditions for short-term and hryvnia loans for businesses, and further easing is expected in the coming periods. The approval rate for business loan applications has remained stable. Lending standards for mortgages and consumer loans have been easing for four consecutive quarters, and respondents plan to continue this trend in the next quarter. The approval rate for applications has increased for all types of loans provided to households.
Banks also note a significant increase in currency and credit risks, as well as a certain rise in interest and operational risks. In the second quarter, they forecast an increase in all categories of risks, except for operational risks.