The credit standards and the terms and conditions for loans to households remained unchanged in the fourth quarter of 2023. The demand for housing loans decreased, while the demand for consumer credit remained unchanged.
Loans to non-financial corporations
In the fourth quarter of 2023, the credit standards for loans to non-financial corporations (NFCs) remained unchanged compared with the third quarter of 2023, in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect credit standards to remain unchanged during the first quarter of 2024.
The overall terms and conditions for loans to NFCs remained unchanged compared with the third quarter of 2023, although there was some pressure from the competition to ease terms on average loans.
During the fourth quarter of 2023, the overall demand for corporate loans remained unchanged. During the next quarter, the overall demand for loans is expected to remain almost unchanged, although the demand for long-term loans by small and medium-sized enterprises is expected to increase somewhat.
In the fourth quarter of 2023, the ratio of rejected applications for loans to NFCs remained unchanged compared with the previous quarter.
Loans to households
In the fourth quarter of 2023, the credit standards for loans to households remained unchanged compared with the third quarter of 2023, in line with the expectations expressed in the previous quarterly survey round. The terms and conditions for loans to households remained unchanged as well, although the margin of banks on consumer credit decreased somewhat.
The demand for housing loans decreased, because of the general level of interest rates and the termination of state-subsidized housing programs. The demand for consumer credit remained unchanged. During the next quarter, the overall demand for housing and consumer loans is expected to remain basically unchanged.
Banks expect that, during the first quarter of 2024, credit standards for housing and consumer loans will remain unchanged.
During the fourth quarter of 2023, the ratio of rejected applications for both housing and consumer loans remained unchanged
