April 21, 2025
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Economy

Credit market revitalizes: banks forecast further demand growth

Credit market revitalizes: banks forecast further demand growthIn the first quarter of 2025, banks noted an increase in demand for business and household loans, including mortgages. They
forecast further growth in lending volumes and a softening of standards.
”, — write: unn.ua

In the first quarter of 2025, banks recorded an increase in demand for loans from both businesses and households. Financial institutions also forecast a further increase in lending volumes. This was reported by the National Bank, citing the quarterly Survey on Bank Lending Conditions, writes UNN.

Banks are recording an increase in demand for loans from businesses and the public, and as before, expect demand to increase further and forecast an increase in the volume of the loan portfolio for corporations and households in the next 12 months

According to the survey results, demand for corporate loans slightly increased in the first quarter, mainly for Hryvnia-denominated ones. In the second quarter, respondents forecast an increase in demand for all types of business loans.

The public’s interest in lending also increased. Some large banks reported a revival in mortgage demand, bringing the balance of responses to its highest level since the start of the full-scale invasion. A significant portion of respondents expect further growth in demand for mortgage and consumer loans.

Business debt burden remained moderate, respondents believe, while household debt is low.

Business demonstrates increasing confidence in the future: enterprises expect an increase in investment and production – NBU17.04.25, 19:37 • 7904 views

Also, according to the survey, banks slightly eased lending standards for short-term and Hryvnia business loans and expect them to ease further. The approval rate for business loan applications remained unchanged overall.

Credit standards for mortgages and consumer loans have been easing for four consecutive quarters, and respondents also plan to ease them in the next quarter. The application approval rate increased for all types of household loans 

The NBU’s Discount Rate Remains Unchanged: What This Means for Prices and Loans 17.04.25, 15:16 • 66819 views

At the same time, banks recorded an increase in currency and credit risks, as well as some increase in interest rate and operational risks. In the second quarter, financial institutions expect an increase in almost all types of risks, except for operational.

For referenceIt is noted that 26 financial institutions participated in the survey, and their share in the total assets of the banking system is 96%.

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