Banks record an increase in demand for loans from the public.

Banks have noted a significant increase in demand for loans from businesses and individuals. Demand is expected to continue rising, and over the next 12 months, the loan portfolio of corporations and households is set to grow.

According to the results of the quarterly Survey on Bank Lending Conditions, in the first quarter, demand for corporate loans increased slightly, primarily in hryvnias. Respondents anticipate an increase in demand for loans for businesses of all kinds in the second quarter.

The survey showed that the demand for loans from the public is also rising. Some major banks reported an increase in demand for mortgages, which has led to the highest balance of responses since the start of the comprehensive study. Most respondents expect further growth in demand for mortgages and consumer loans.

According to the survey, the overall debt burden of businesses remains average, while the household debt level is low.

Banks have slightly eased lending standards for short-term and hryvnia loans to businesses and expect further relaxation. The approval rate for loan applications for businesses remains stable overall.

Lending standards for mortgages and consumer loans have been easing for four consecutive quarters, and respondents plan to continue easing them in the next quarter. The approval rate for all types of loans for households has increased.

Banks are noting a significant increase in currency and credit risks, as well as a certain increase in interest and operational risks. In the second quarter, they forecast an increase in all kinds of risks except operational risks.