Banks show record optimism of growth in loans and deposits since 2015 – NBU survey
Ukrainian banks have improved expectations for credit growth and an influx of deposits in the next 12 months, noting a slight increase in currency risk and a decrease in credit risk, such a survey for the fourth quarter of 2019 was published by the National Bank of Ukraine (NBU).
"Most of the financial institutions surveyed are convinced that the demand for loans to small and medium enterprises (SME) and consumer loans will continue to grow. At the same time, in accordance with the expectations of banks, credit standards will become softer for all types of corporate lending and, although not significantly, for consumer lending," the central bank said.
According to the report, 74% of respondents predict an increase in the portfolio of corporate and retail loans. At the same time, they rated the prospects for resuming corporate lending higher than for the entire history of observations since 2015, at 53%.
A record number of banks expects an influx of deposits of both enterprises with 53% and individuals with 62%.
The estimates of interest and operational risk as well as liquidity risk remained the same.
According to banks, in the third quarter of 2019, the demand of the population for consumer loans, legal entities for short-term loans, as well as for loans to SMEs increased against the background of a decrease in their value. The reason for the growth in business demand for loans remains its need for working capital and investment funds, the report says.