Sunday10 November 2024
podrobnosti.org.ua

Banks will increase lending to the public and ease requirements for borrowers.

In the fourth quarter of 2024, banks in Ukraine anticipate an increase in demand for all types of retail loans. They plan to relax lending standards for consumer credit.
Банки увеличат кредитование населения и смягчат требования к заемщикам.
gryvnya_1

This information is reported by RBC-Ukraine referencing the NBU Survey on Banking Lending Conditions (Q4 2024). This was also reported by Kontrakty.UA.

According to the survey, the demand for loans among the population has increased for three consecutive quarters, with the highest demand for consumer loans in Q3. The main factors driving the increased demand for retail loans were improved consumer sentiment and lower interest rates. Rising expenses on durable goods fueled the demand for consumer loans. Some banks reported a decline in loan demand due to increased competition among banks.

In Q3, financial institutions continued to ease lending standards for the population. This was primarily driven by heightened overall competition. Positive expectations regarding the solvency of clients contributed to the relaxation of lending standards for consumer loans. At the same time, worsening inflation and exchange rate expectations somewhat restrained the easing of standards for mortgages.

In Q3, the approval rate for consumer loan applications increased. Concurrently, banks reduced the cost of loans to the public. For consumer loans, financial institutions raised the loan amounts.

The current survey on banking lending conditions was conducted from September 16 to October 7, 2024, among bank credit managers. Responses were provided by 26 financial institutions, which account for 96% of the total assets in the banking system. The survey results reflect the opinions of the respondents and are not assessments or forecasts of the National Bank.

According to the NBU, the average interest rate on loans for individuals in September 2024 was 33.8%.