More banks expects increase in crediting of public, business in next 12 months

More and more Ukrainian banks expect that corporate crediting and crediting of the public would increase in next 12 months, according to the results of a pall on the conditions of crediting for Q4 2017 posted on the website of the National Bank of Ukraine (NBU).

The share of banks anticipating larger amounts of corporate crediting grew to 76% from 68% in the poll for Q3 2017 and crediting of the public – to 64% from 62%.

The respondents said that in Q3 2017 demand on all types of corporate credits grew. This is linked to the reduction of credit rates, the needs of enterprises in working capital and investment and the necessity of restructuring debts.

The increase in crediting in the consumer segment was moderate. However, demand on mortgage credits has significantly grown along with revival on the real estate market and the reduction of rates.

In Q3 2017, the crediting standards at most banks did not change, while some large banks toughened them for the consumer segment. Banks believe that the credit and currency risks grew in Q3 2017 and this trend would continue until the end of this year. The interest and liquidity risks narrowed, while operation risks did not change.

Most banks say that next quarter the crediting standards in all segments would not change or would be relaxed.

Traditionally expectations regarding inflow of deposits of the public and business remain optimistic: 61% of respondents hope that deposits would expand (56% in the poll for Q3 2017) and corporate deposits – 66% (60%).

The poll was conducted from September 21 through October 9, 2017 among managers of 67 banks, which share of the banking system assets is 97%.