Banks keep strict standards as loan demand picks up

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By Stelios Orphanides

Banks plan to maintain their lending standards for corporate loans, mortgages and consumer and other lending unchanged in the first quarter of the year after doing so in October to December, the Central Bank of Cyprus said.

After demand for loans increased in all three categories in the last quarter of 2016, it is expected to further grow in the first quarter, the central bank said in its bank lending survey on its website.
Banks in the euro area kept their standards unchanged for corporate loans in the last quarter of 2016 and plan to do the same in January to March, the survey said. After tightening standards in the last quarter of 2015 for mortgages, euro area banks indent to relax them. Euro area banks also indent to relax criteria for consumer and other loans in the first quarter of 2017 after having done so in the past quarter.

Demand for loans in all three categories rose in the fourth quarter of 2016 in the euro area and is further expected to increase until March, the central bank said.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]