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Bank of Greece-Bank Lending Survey (BLS): Q3 2020

10/28/2020 | 04:43am

Bank Lending Survey (BLS) (1,2): Q3 2020.

Loans to non-financial corporations

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

The overall terms and conditions for loans to NFCs remained almost unchanged compared with the second quarter of 2020, although banks' loan margin on average loans was slightly reduced.

The overall demand for loans to NFCs increased somewhat compared to the previous quarter (see Chart 2), due mainly to the increased financing needs for inventories and working capital, but also because of the need for debt refinancing. During the next quarterly survey round, the overall demand for both short-term and long-term loans from NFCs is expected to increase somewhat further.

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

The demand for housing and consumer credit increased compared with the second quarter of 2020 (see Chart 2), due to the improvement of consumer confidence. During the next quarterly survey round, the demand for housing loans is expected to increase somewhat.

Banks expect that credit standards will remain unchanged during the fourth quarter of 2020.

The ratio of rejected applications for loans to households remained basically unchanged during the third 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)

Note: The next Press Release on the 'Bank Lending Survey' for Q4 2020 will be published on 19 January 2021, in accordance with the Advance release calendar, published on the Bank of Greece website.

[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

(C) 2020 Electronic News Publishing, source ENP Newswire

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