Economy

Credit standards for loans remain unchanged, says Bank of Greece

The credit standards for loans to non-financial corporations (NFCs) remained unchanged, and banks expect that credit standards will remain unchanged during the third quarter of 2021, the Bank of Greece said in a report released on Tuesday.

The central bank said that the terms and conditions for corporate loans remained basically unchanged, while the overall demand for loans to NFCs increased somewhat.

The credit standards as well as the terms and conditions for loans to households remained unchanged, while the demand for both housing and consumer credit increased somewhat.

In the second quarter of 2021, the credit standards for loans to non-financial corporations (NFCs) remained unchanged compared with the first quarter of 2021, in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect that credit standards will remain unchanged during the third quarter of 2021. The overall terms and conditions for loans to NFCs remained almost unchanged compared with the first quarter of 2021. The overall demand for loans to NFCs increased somewhat due to the increased financing needs for fixed investments and working capital. During the next quarter, the overall demand for both short-term and long-term loans to NFCs is expected to increase somewhat. In the second quarter of 2021, the ratio of rejected applications for loans to NFCs remained basically unchanged compared with the previous quarter.

–     In the second quarter of 2021, the credit standards as well as the terms and conditions for loans to households remained unchanged compared with the first quarter of 2021, in line with the expectations expressed in the previous quarterly survey round. The overall demand for housing and consumer credit increased somewhat compared with the first quarter of 2021. The improvement in consumer confidence contributed to the increase in demand. During the next quarter, the demand for housing loans is expected to remain almost unchanged, while the demand for consumer loans is expected to increase somewhat. The ratio of rejected applications for loans to households remained basically unchanged during the second quarter of 2021 compared with the previous quarter.

source: Bank of Greece

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