Bank Lending Survey (BLS): Q2 2023
25/07/2023 - Press Releases
- The credit standards for loans to non-financial corporations (NFCs) remained unchanged in the second quarter of 2023. The terms and conditions and the overall demand for corporate loans remained almost unchanged.
- The credit standards for loans to households remained unchanged in the second quarter of 2023, whilst the terms and conditions for loans to households remained almost unchanged. The demand for housing loans increased, while the demand for consumer credit remained almost unchanged.
Loans to non-financial corporations
In the second quarter of 2023, the credit standards for loans to non-financial corporations (NFCs) remained unchanged (see Chart 1) compared with the first 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 third quarter of 2023.
The overall terms and conditions for loans to NFCs remained almost unchanged compared with the first quarter of 2023, although interest margins on average loans decreased somewhat.
During the second quarter of 2023, the overall demand for loans remained almost unchanged, although the demand for loans from large enterprises increased somewhat (see Chart 2), driven by the favorable interest rates on loans co-financed with EU’s Recovery and Resilience Facility (RRF). During the next quarter, the overall demand for loans is expected to remain almost unchanged.
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 second quarter of 2023, the credit standards for loans to households remained unchanged compared with the first 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 almost unchanged.
The demand for housing loans increased, because of the state program “My House” for low interest rate loans co-financed with the Public Employment Service (DYPA). The demand for consumer credit remained almost unchanged (see Chart 2). During the next quarter, the overall demand for housing loans is expected to decrease, whilst the demand for consumer credit is expected to remain unchanged.
Banks expect that, during the third quarter of 2023, credit standards for housing and consumer loans will remain unchanged.
During the second quarter of 2023, the ratio of rejected applications for housing loans increased, 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 Q3 2023 will be published on 24 October 2023, in accordance with the Advance release calendar published on the Bank of Greece website.
Related links:
More on the Bank Lending Survey
Methodology