Demand for consumer loans and loans for small and medium-sized enterprises (SMEs) is expected to increase in the last quarter of the year, according to the Bank of Greece (BoG).
More specifically, the credit standards for loans to non-financial corporations (NFCs) remained stable in the third quarter of 2023 while the terms and conditions for corporate loans also remained unchanged.
The credit standards and the terms and conditions for loans to households were the same in the third quarter of 2023 while the demand for housing loans decreased, and the demand for consumer credit remained almost unchanged.
Loans to non-financial corporations
In the third quarter of 2023, the credit standards for loans to non-financial corporations (NFCs) remained almost unchanged compared with the second quarter of 2023, in line with the expectations expressed in the previous quarterly survey. Moreover, banks expect credit standards to remain stable during the fourth quarter of 2023.
During the third quarter of 2023, the overall demand for corporate loans remained unchanged. During the next quarter, the overall demand for loans is expected to remain unchanged, although the demand for loans by small and medium-sized enterprises is expected to increase somewhat.
In the second quarter of 2023, the ratio of rejected applications for loans to NFCs remained stable compared with the previous quarter.
Loans to households
In the third quarter of 2023, the credit standards for loans to households remained unchanged compared with the second quarter of 2023, in line with the expectations expressed in the previous quarterly survey. The terms and conditions for loans to households remained unchanged as well.
However, the demand for housing loans decreased, because of the termination of the subsidized housing program “My Home”. The demand for consumer credit remained almost unchanged. During the next quarter, the overall demand for housing loans is expected to remain unchanged, whilst the demand for consumer credit is expected to increase.
