Banks forecast the expansion of loan portfolios and expect a significant increase in the demand for loans from businesses and the population.
Ukrainian banks expect an increase in demand for all types of loans – both corporate and retail. This was reported by the National Bank of Ukraine with reference to the results of a quarterly survey on bank lending conditions.
“For the eighth quarter in a row, banks predicted an increase in the volume of business loans and for the sixth quarter – loans to the population. According to the current survey, a larger share of respondents will increase their corporate portfolio in the future, while a slightly smaller share will expand their retail portfolio,” the report says.
The growth in demand for loans from small and medium-sized businesses (SMEs) is influenced by capital investment and working capital needs, lower interest rates, and the need for debt restructuring.
Among the population, demand is increasing due to better consumer sentiment and real estate market prospects, including low interest rates on mortgages. Demand for consumer loans is fueled by higher prices for durable goods and lower savings.
The NBU survey recorded a record share of respondents who relaxed credit standards for retail loans. They have weakened for six quarters in a row.
As of July 1, the hryvnia loan portfolio of businesses and households reached UAH 790 billion, almost returning to the level of May 2022 (UAH 773.8 billion).
