Banks’ lending policy
NBP analyses: As a result of the implementation of Recommendation T banks have significantly eased their lending policy in the segment of consumer loans. Demand for housing loans has increased despite no major changes in the lending policy. Some lending terms in the segment of corporate loans have been eased for the first time in a year.
Survey on bank lending practices and credit conditions
Przemysław Wejner of NBP Financial System Department discusses the results of the latest edition of the survey on bank lending practices and credit conditions.
On 5 August, the National Bank of Poland released the quarterly “Senior Loan Officer Opinion Survey on Bank Lending Practices and Credit Conditions”. The survey was conducted at the turn of June and July 2013 among 27 banks with a total share of 81% in the loan portfolio.
In accordance with the announcement in the previous survey, in the second quarter of 2012, banks eased their lending policy significantly with regard to consumer loans. This applied both to standards the borrower should meet and lending terms (rise in the maximum loan size, reduction in spreads and extension of loan maturity). Banks justified the lending policy easing by entry into force of the amended Recommendation T. In their opinion, the growth in availability and attractiveness of consumer loans was conducive to a substantial increase in demand for this type of funding. Banks expect further lending policy easing in the third quarter of 2013 and a rise in demand.
A slight easing of housing loan standards continued to be accompanied by a rise in spreads. Contrary to the expectations formulated at the end of the previous quarter, banks experienced a rise in housing loan demand, and some of the banks termed the rise as considerable. According to banks, the rise in demand resulted primarily from limiting the offer in this segment of the credit market by some banks and intensifying their sales and marketing activities.
The survey responding banks reported a slight tightening of long-term corporate credit standards. At the same time, they extended maximum maturity and lowered non-interest loan costs, for the first time in a year. Lending policy easing towards small and medium-sized enterprises was driven, among others, by the launch of the government scheme De Minimis portfolio guarantee facility. A minor rise in demand only took place in the case of short-term loans to large enterprises, which was justified by banks, among others, by payment backlogs and extended payment periods in the sector of enterprises.
See a full version of “Senior Loan Officer Opinion Survey on Bank Lending Practices and Credit Conditions, 3rd quarter of 2013”.