The credit standards for loans to non-financial corporations (NFCs) remained unchanged in the second quarter of 2024, while the terms and conditions for corporate loans eased, the Bank of Greece (BOG) said in a survey. The overall demand for corporate loans remained unchanged.
The credit standards and the terms and conditions for household loans also remained unchanged in the second quarter of 2024. The demand for housing loans was stable as well as the demand for consumer credit.
Loans to non-financial corporations
In the second quarter of 2024, the credit standards for loans to non-financial corporations (NFCs) remained unchanged compared with the first quarter of 2024, in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect credit standards to remain stable in the third quarter of 2024.
The overall terms and conditions for loans to NFCs eased somewhat compared with the first quarter of 2024, as the pressure from competition led to narrower margins on average loans.
During the second quarter of 2024, demand for corporate loans remained unchanged even though the financing needs for inventories and working capital increased. During the next quarter, demand for loans is seen at the same levels, although demand from small and medium-sized enterprises is expected to rise.
In the second quarter of 2024, the ratio of rejected applications for loans to NFCs did not change compared with the previous quarter.
Loans to households
In the second quarter of 2024, the credit standards for loans to households remained unchanged compared with the first quarter of 2024, the Bank of Greece said, adding that the terms and conditions for housing and consumer loans remained also unchanged. Banks expect that, during the third quarter of 2024, credit standards for housing and consumer loans will be the same.
The demand for housing loans remained stable, while the demand for consumer credit was also stable. During the next quarter, the overall demand for housing and consumer loans is expected to remain unchanged.
During the second quarter of 2024, the ratio of rejected applications for housing loans and consumer credit stood at the same levels.
