The positive sentiments of banks on lending dynamics in the first quarter of 2021 intensified in the second quarter: respondents noted a further increase in household and corporate borrowing demand and improved their business loan portfolio growth expectations to a record high. This is stated in the results of a survey of the National Bank of Ukraine on the conditions of bank lending.
The survey was conducted from June 17 to July 9, 2021 among credit managers of 24 banks, whose share in the total assets of the banking system is 90%. The purpose of the survey is to improve understanding of the state and development trends of the credit market by the National Bank and the banking sector.
In April-June 2021, the demand for business loans increased, most of all - for loans to small and medium-sized enterprises, hryvnia and short-term loans. The main factors are the decrease in interest rates, the need of enterprises for capital investments and working capital.
Banks mark the softening of creditworthiness for business for the third quarter in a row and explain this by a high level of liquidity, increased competition with other banks, positive expectations regarding general economic activity and the development of certain industries, primarily for small businesses.
A third of respondents noted an increase in the level of approval of applications due to lower interest rates, primarily for large companies, as well as due to an increase in the size of loans.
More than 80% of banks consider the total debt burden to be medium, while large enterprises have a higher debt compared to small and medium enterprises.
