According to the bank lending survey published by the Central Bank of Cyprus (CBC), lending criteria for businesses and households in Cyprus remained unchanged in the third quarter of 2024 compared to the previous quarter.

The survey data highlight the changes in lending criteria and credit demand in Cyprus in the third quarter of 2024 compared to the second quarter.

It also provides insights into expected trends for the fourth quarter of 2024.

The central bank stated that the survey results reflect the perceptions and expectations of participating banks and do not represent the views or forecasts of the CBC itself.

All factors influencing credit approval criteria had a neutral impact across all categories in the reporting quarter.

The general conditions for granting new loans to companies and private households also remained unchanged compared to the previous quarter.

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For companies , this stability has persisted despite a significant decline in interest rates on new corporate loans , a decline in banks' lending margins on standard corporate loans, increased competition from other financial institutions and a lower assessment of the general economic outlook.

The criteria for granting mortgages to private households also remained unchanged in the third quarter of 2024, despite falling interest rates and bank margins for granting new home loans.

All factors affecting the conditions for granting new consumer and other private loans also had a neutral impact during this period.

Regarding credit demand, corporate net demand remained stable for the second consecutive quarter.

However, households' net demand for housing loans increased for the first time since the first quarter of 2022 due to improved housing market prospects.

Meanwhile, net demand for consumer and other household credit remained unchanged.

Looking ahead to the fourth quarter of 2024, banks expect lending criteria to remain stable for both businesses and households.

At the same time, net demand for corporate loans and housing loans is expected to increase, while net demand for consumer credit and other household loans is expected to remain stable.











Source: CyprusMail.com
Author: Kyriacos Nicolaou