Bank Lending Survey (BLS): Q3 2023
24/10/2023 - Press Releases
- The credit standards for loans to non-financial corporations (NFCs) remained almost unchanged in the third quarter of 2023. The terms and conditions for corporate loans also remained almost unchanged. The overall demand for corporate loans remained unchanged.
- The credit standards and the terms and conditions for loans to households remained unchanged in the third quarter of 2023. The demand for housing loans decreased, while the demand for consumer credit remained almost unchanged.
Loans to non-financial corporations
In the third quarter of 2023, the credit standards for loans to non-financial corporations (NFCs) remained almost unchanged (see Chart 1) compared with the second quarter of 2023, in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect credit standards to remain unchanged during the fourth quarter of 2023.
The overall terms and conditions for loans to NFCs remained almost unchanged compared with the second quarter of 2023, although interest margins on average loans decreased somewhat.
During the third quarter of 2023, the overall demand for corporate loans remained unchanged (see Chart 2). During the next quarter, the overall demand for loans is expected to remain almost unchanged, although the demand for loans by small and medium-sized enterprises is expected to increase somewhat.
In the second quarter of 2023, the ratio of rejected applications for loans to NFCs remained unchanged compared with the previous quarter (see Chart 3).
Loans to households
In the third quarter of 2023, the credit standards for loans to households remained unchanged compared with the second quarter of 2023 (see Chart 1), in line with the expectations expressed in the previous quarterly survey round. The terms and conditions for loans to households remained unchanged as well.
The demand for housing loans decreased, because of the termination of the subsidized housing program “My Home”. The demand for consumer credit remained almost unchanged (see Chart 2). During the next quarter, the overall demand for housing loans is expected to remain unchanged, whilst the demand for consumer credit is expected to increase.
Banks expect that, during the fourth quarter of 2023, credit standards for housing and consumer loans will remain unchanged.
During the third quarter of 2023, 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 Q4 2023 will be published on 23 January 2024, in accordance with the Advance release calendar published on the Bank of Greece website.
Related links:
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