Polish banks expect growth of credit demand in Q2, especially consumer loans - c. bank's survey
Polish banks are expecting an increase in demand for loans in the second quarter, especially consumer loans, a cyclical survey made by Poland's central bank NBP showed. Banks plan to continue easing lending criteria for households and SMEs, and to tighten the cryteria for large companies for short-term loans.
According to the NBP, credit policy changes in the first quarter of 2025 were relatively small in scale.
Banks relaxed the criteria for granting consumer loans and loans to the SME sector - which they justified mainly on the grounds of increased competitive pressure.
In the case of housing and large business loans, the criteria were not significantly changed. Banks experienced an increase in demand for consumer and corporate loans and a decrease in demand for housing loans.
In the second quarter of 2025, banks intend to continue easing the criteria for lending to households and to SMEs, and to tighten for short-term loans to large businesses. They expect an increase in demand for all types of loans, especially for consumer loans.
For large enterprises and easing for SMEs the NBP saw no change in lending criteria, and easing of lending policy conditions, i.e. reduction of lending margins and non-interest loan costs; changes justified by increased competitive pressure from other banks.
The central bank expects an increase in demand for all types of credit, especially from large companies, as a result of a decrease in the use of own funds and from the issuance of debt securities.
In the second quarter of 2025 the NBP expects easing of lending policy towards SMEs, significantly higher than in the first quarter of this year; tightening for short-term loans to large companies and an increase in demand for all types of loans.
In terms of housing loans the central bank saw no significant changes in criteria while most terms and conditions of housing loans were eased (e.g. reduction of lending margins) motivated by increased competitive pressure from other banks and improvement in banks' capital situation and forecasts for the housing market.
Seeing a decline in demand motivated, among other things, by forecasts of the situation in the housing market and a decline in the use of alternative sources of financing, including household savings, the NBP expects an easing of credit policy and an increase in demand for housing loans in the second quarter.
In terms of credit policy, a relaxation of credit policy criteria and a simultaneous easing of most lending conditions (including an increase in the maximum loan amount and a reduction in the lending margin) motivated mainly by competitive pressure from other banks is once again evident.
The central bank expects renewed easing of credit policy and further increase in demand for consumer loans by most banks in the second quarter.
tus/ han/ nl/