09/04/2024 - Press Releases

- The credit standards for loans to non-financial corporations (NFCs) remained unchanged in the first quarter of 2024, while the terms and conditions for corporate loans eased somewhat. The overall demand for corporate loans increased.

- The credit standards for loans to households eased somewhat, while the terms and conditions for housing loans tightened somewhat in the first quarter of 2024. The demand for housing loans remained unchanged, while the demand for consumer credit increased.

Loans to non-financial corporations

In the first quarter of 2024, the credit standards for loans to non-financial corporations (NFCs) remained unchanged compared with the fourth quarter of 2023 (see Chart 1), in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect credit standards to remain unchanged also during the second quarter of 2024.

The overall terms and conditions for loans to NFCs eased somewhat compared with the fourth quarter of 2023, as the pressure from competition lead to lower interest rates and narrower margins on average loans.

During the first quarter of 2024, the overall demand for corporate loans and, in particular, the demand for long-term loans by large enterprises increased (see Chart 2). During the next quarter, the overall demand for loans is expected to remain unchanged.

In the first quarter of 2024, the ratio of rejected applications for loans to NFCs remained unchanged compared with the previous quarter (see Chart 3).

Loans to households

In the first quarter of 2024, the credit standards for loans to households eased somewhat compared with the fourth quarter of 2023 (see Chart 1), due to the pressure from competition. The terms and conditions for housing loans tightened somewhat, due to the termination of state-subsidized housing programs, while the terms and conditions for consumer credit remained almost unchanged. Banks expect that, during the second quarter of 2024, credit standards for housing and consumer loans will remain unchanged.

The demand for housing loans remained unchanged, while the demand for consumer credit increased (see Chart 2). During the next quarter, the overall demand for housing and consumer loans is expected to remain unchanged.

During the first quarter of 2024, the ratio of rejected applications for housing loans remained almost unchanged, while the corresponding ratio for consumer credit remained unchanged compared with the previous quarter (see Chart 3).

Chart 1 - Credit Standards (Average)

Chart 2 - Demand (Average)

Chart 3 - Share of rejected applications (Average)

Related information:

The next Press Release on the "Bank Lending Survey" for Q2 2024 will be published on 16 July 2024, in accordance with the Advance release calendar published on the Bank of Greece website.

Related links:

More on the Bank Lending Survey

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Bank of Greece published this content on 09 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2024 11:10:05 UTC.