The banks continue to record increases in loan demand from businesses and households, are expecting demand to rise going forward, and are projecting growth in the volume of corporate and retail loan portfolios in the next 12 months. This is according to the quarterly Bank Lending Survey.
In Q1, demand for corporate loans edged higher, primarily for hryvnia-denominated ones, according to survey data. The respondents project a rise in demand for all types of loans to businesses in Q2.
Households’ demand for loans also increased, the survey shows. Some of the large financial institutions reported stronger demand for mortgages, taking the balance of responses to its highest level since the outset of the full-scale war. Going forward, a significant percentage of the respondents are predicting higher demand from households for both mortgages and consumer loans.
Businesses’ debt burden remained average and that of households was low, the respondents said.
The banks relaxed their lending standards moderately for short-term and hryvnia loans to businesses and expect this easing to continue, the survey shows. The approval rate of corporate loan applications remained largely unchanged.
The respondents have been easing their lending standards for mortgages and consumer loans for four straight quarters and plan to loosen them further next quarter. The approval rate increased for all types of retail loans.
The banks highlighted a noticeable increase in FX and credit risks, also citing a certain rise in interest-rate and operational risk. In Q2, they project growth in all types of risks, except for the operational one.
This Bank Lending Survey was conducted from 18 March through 7 April 2025 among bank liability managers. The answers were provided by 26 financial institutions, which together held 96% of the banking system’s total assets. The survey’s results reflect the views of the respondents and are not assessments or forecasts by the NBU. A survey featuring expectations for Q3 will be released in July 2025.