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Loans to non-financial corporations
In the fourth quarter of 2020, the overall credit standards for loans to non-financial corporations (NFCs) remained unchanged (see Chart 1) compared with the third quarter of 2020, in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect that the overall credit standards will, in general, remain unchanged during the first quarter of 2021.
The overall terms and conditions for loans to NFCs remained unchanged compared with the third quarter of 2020, although banks' loan margin on average and on riskier loans was slightly reduced.
The overall demand for loans to NFCs increased somewhat compared to the previous quarter (see Chart 2), mainly due to the increased financing needs for inventories and working capital. During the next quarterly survey round, the overall demand for both short-term and long-term loans to NFCs is expected to further increase somewhat.
In the fourth quarter of 2020, the ratio of rejected applications for loans to NFCs remained basically unchanged from the previous quarter (see Chart 3).
Loans to households
In the fourth quarter of 2020, the credit standards as well as the terms and conditions for loans to households remained unchanged compared with the third quarter of 2020 (see Chart 1), in line with the expectations expressed in the previous quarterly survey round.
The demand for housing and consumer credit increased somewhat compared with the third quarter of 2020 (see Chart 2). Τhe housing market prospects, consumer confidence and the general level of interest rates contributed to the increase in demand. During the next quarterly survey round, the demand for housing and consumer credit loans is expected to remain unchanged.
Banks expect that credit standards will also remain unchanged during the first quarter of 2021.
The ratio of rejected applications for loans to households remained basically unchanged during the fourth quarter of 2020 (see Chart 3) compared with the previous quarter.
Chart 1 - Credit Standards (Average)
Note: The next Press Release on the 'Bank Lending Survey' for Q1 2021 will be published on 20 April 2021, in accordance with the Advance release calendar, published on the Bank of Greece website.
[1] For more information on the Bank Lending Survey, see
https://www.bankofgreece.gr/en/statistics/monetary-and-banking-statistics/bank-lending-survey
[2] Information regarding the BLS methodology is available at:
https://www.bankofgreece.gr/RelatedDocuments/Methodology_BankLendingSurvey.pdf
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Bank of Greece published this content on 19 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2021 12:21:01 UTC
