The five largest national banks are improving the conditions of loans to businesses and individuals, particularly in terms of reduction of spreads (trading margin of banks), reveals the survey Banks on the Market Credit, released on Tuesday.
The reduction of spreads is happening only in the medium-risk loans but is checking up operations to small and medium enterprises (SMEs), large enterprises and loans to households for house purchase housing.
The survey June shows that the credit segment housing, four institutions reported a decrease of spreads applied to medium risk operations, a decrease that is explained by the pressure competition between institutions. In this segment, only one of the institutions also reported a decrease in spreads in riskier loans.
Also in this area, there is an indicator to evolve negatively, which was reported by an institution, which relates to a slight increase in the ratio between the value of the collateral and the loan amount to be granted.
In loans to households for consumption and other purposes, the conditions remained relatively stable from the previous quarter, with only one of the participating institutions indicated a slight decrease in spreads applied to average risk loans.
In general, the lending criteria remained relatively stable in the last three months. But here too there has been an improvement, as some institutions reported a slight decrease in restrictiveness (fixed requirements), particularly in the segment of loans to large companies, with some institutions to refer a slight increase in the amount of loans.
On the demand side there is also a recovery, since most institutions reported “a slight increase in the segments of enterprises and individuals.”
In business, there was an increase in demand for loans or credit lines especially in the SME segment and in longer maturities. In particular, an increase in lending for house purchase was reported as well as in loans for consumption and other purposes.
For the increase in grant and credit conditions have also contributed greater competition between banks and a more favorable assessment of the situation and perspectives of activity or specific business sectors. The credit quality of the borrower and the improved funding conditions and balance sheet constraints of financial institutions help explain the improvement reflected in the survey sponsored by the Bank of Portugal.
For the next three months, “the five institutions anticipate a slight increase in demand for loans or credit lines by enterprises. ” As regards individuals, the outlook is also growth in demand, with the exception of an institution which anticipates relatively stable.
No comments:
Post a Comment