MNB: Loan Officers Indicate Stable Lending Capacity

MNB

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A quarterly survey of loan officers published by the National Bank of Hungary (MNB) on its website shows stable lending capacities, unchanged credit conditions and low demand in the local credit market.

The survey, conducted on July 1-18, shows banks "generally" left corporate credit conditions unchanged in the second quarter.

However, 22% of respondents said spreads for larger companies rose because of the uncertain economic outlook and industry-specific problems.

Banks do not plan to modify corporate credit conditions significantly in the second half of the year, but 28% augur an increase in premiums for higher-risk loans. None of the banks reported tightening due to capital or liquidity positions, indicating "ample" lending capacity.

Some 14% of banks reported a pickup in demand for corporate credit. Demand for long-term credit continued to decline, albeit at a slower pace, while 65% of lenders noted increased demand for short-term credit.

Over a six-month horizon, 27% of banks expect demand for corporate credit to grow further.

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