Banks stick to strict standards as loan demand picks up, CBC says

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By Stelios Orphanides

Demand for credit is expected to increase further in the third quarter of the year after rising in April to June as Cypriot banks stick to their tight standards, the Central Bank of Cyprus said.

Demand for new corporate credit, which rose in the second quarter, is expected to rise in July to September, the supervisory authority said in its quarterly bank lending survey. Demand for mortgages is also expected to rise in the third quarter, after it did so in the previous quarter, while demand for consumer credit, which remained unchanged in April to June, is also expected to rise.

Cypriot banks, plagued by their non-performing loans stock of roughly half their portfolio, kept their credit standards unchanged in the second quarter and are expected to do so in the current quarter, the central bank said.

In the euro area, where demand for new credit picked up in the second quarter and is expected to increase further in the third quarter, banks relaxed their credit standards in April to June and are expected to continue doing so in the third quarter, the central bank said.

 

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

  • konstabo

    back to there old tricks of making false statements to get loans that they dont intend on paying back , or that they could never pay back , but thats ok because the banks can just steal there customers money again like they did last time in order to cover themselves….. Its like you make a bunch of bad investments with other peoples money that they entrusted with you , you end up going broke and instead of recalling those investments you tell those people who trusted you with there money that its there fault for trusting you…..what a bunch of crooks…..

    • Cydee

      Can’t the government regulate the loans, or is that not allowed in a free-capitalist state?

    • Barry White

      The problem is that the government took the depositors’ money and not the banks.

      The Tof drained away the State’s wealth on handouts to the rabble. Prez Nik has completed the job and did the same with the Troika’s money.