Bank Lending Survey 2020 Q1

Commercial banks reported tightened credit standards in 2020 Q1. Credit standards were tightened for loans to enterprises for investment and liquidity purposes also for loans to households for house purchase and consumption financing. Banks noted an overall fall of credit demand in 2020 Q1. The fall in credit demand to enterprises was perceived in all segments of enterprises, by size, and by purpose of credit. Also, the pronounced fall of credit demand to households was evident in both categorises, for house purchase and consumption financing.
The expectations for the second quarter of 2020 are almost the same with the first one. Hence, banks expect a further tightening of credit standards, to both households and enterprises. The tightening of credit standards for loans to enterprises and households is expected to appear in all categories and subdivisions of each relevant segment. Also, credit demand is expected to be lower in 2020 Q2, to both enterprises (small medium-sized and large enterprises), mainly for investment purposes, also to households for house purchase and consumption financing.