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Bank Lending Survey (BLS): Q2 2020

14/07/2020 - Press Releases

Loans to non-financial corporations

In the second quarter of 2020, the overall credit standards for loans to non-financial corporations (NFCs) remained unchanged (see Chart 1) compared with the first 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 third quarter of 2020.

The terms and conditions for loans to NFCs remained unchanged compared with the first quarter of 2020.

The demand for loans to NFCs increased somewhat compared to the previous quarter (see Chart 2), due to the increased financing needs for inventories and working capital and shortages of internal financing. During the next quarterly survey round, the demand for loans from NFCs is expected to increase somewhat further, with the increase being slightly stronger in the case of small and medium size enterprises.

In the second quarter of 2020, the ratio of rejected applications for loans to NFCs remained basically unchanged compared with the previous quarter (see Chart 3).

Loans to households

In the second quarter of 2020, the credit standards as well as the terms and conditions for loans to households remained basically unchanged compared with the first quarter of 2020 (see Chart 1), in line with the expectations expressed in the previous quarterly survey round.

The demand for housing loans remained basically unchanged compared with the first quarter of 2020 (see Chart 2), while the demand for consumer loans decreased somewhat. The factor which affected the demand for consumer loans in the second quarter of 2020 was the declining consumer confidence.

Banks expect that credit standards and the demand for loans to households will remain unchanged during the third quarter of 2020.

The ratio of rejected applications for loans to households remained basically unchanged during the second quarter of 2020 (see Chart 3) compared with the previous one.

Chart 1 - Credit Standards (Average)

 


Chart 2 -
Demand (Average)

 


Chart 3 - Share of rejected applications
(Average)

 


(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

Note: The next Press Release on the “Bank Lending Survey” for Q3 2020 will be published on 27 October 2020, in accordance with the Advance release calendar, published on the Bank of Greece website.

 

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