Including corporate bond subscriptions, banks' credit to non-financial businesses increased 12%, the report shows.

Lending to SMEs climbed 20.6% during the period.

The participation rate in a repayment moratorium the government introduced in the spring of 2020 to shield against the economic fallout from the coronavirus crisis has declined to 21% of the corporate portfolio, although rates remain higher in some sectors, Dancsik said.

The participation rate for commercial property loans stands at 46pc, while the rate for hotel financing is 80%.

A survey of loan officers showed two-third of banks plan to increase their corporate lending stock and their SME loans in the second half of 2021.

At least one-fifth of banks of expect a deterioration in portfolio quality in H2 with the end of the blanket moratorium.

Banks estimate that 5%-15% of corporate lending stock in the moratorium at present could be "vulnerable".

Banks reported "lively demand" for credit and unchanged lending conditions in Q2. They augured continued dynamic demand in the second half, while net 10% said they would ease lending conditions for big companies, 14% would ease them for microbusinesses and SMEs and 20% would ease them for commercial property loans.

Banks said the phase-out of the NBH's FGS Go! corporate credit scheme would "not create wide-scale tension" on the lending market, but is expected to have a "tangible" effect in the farm sector.