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Bank Lending Survey (BLS): Q4 2023

23/01/2024 - Press Releases

- The credit standards for loans to non-financial corporations (NFCs) remained unchanged in the fourth quarter of 2023. The terms and conditions for corporate loans also remained unchanged. Moreover, the overall demand for corporate loans remained unchanged.

- The credit standards and the terms and conditions for loans to households remained unchanged in the fourth quarter of 2023. The demand for housing loans decreased, while the demand for consumer credit remained unchanged.

Loans to non-financial corporations

In the fourth quarter of 2023, the credit standards for loans to non-financial corporations (NFCs) remained unchanged compared with the third quarter of 2023 (see Chart 1), in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect credit standards to remain unchanged during the first quarter of 2024.

The overall terms and conditions for loans to NFCs remained unchanged compared with the third quarter of 2023, although there was some pressure from the competition to ease terms on average loans.

During the fourth 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 long-term loans by small and medium-sized enterprises is expected to increase somewhat.

In the fourth 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 fourth quarter of 2023, the credit standards for loans to households remained unchanged compared with the third 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, although the margin of banks on consumer credit decreased somewhat.

The demand for housing loans decreased, because of the general level of interest rates and the termination of state-subsidized housing programs. The demand for consumer credit remained unchanged (see Chart 2). During the next quarter, the overall demand for housing and consumer loans is expected to remain basically unchanged.

Banks expect that, during the first quarter of 2024, credit standards for housing and consumer loans will remain unchanged.

During the fourth quarter of 2023, the ratio of rejected applications for both housing and consumer loans remained unchanged (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 Q1 2024 will be published on 9 April 2024, in accordance with the Advance release calendar published on the Bank of Greece website.

Related links:

More on the Bank Lending Survey

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