Demand for loans from private individuals increased in the second quarter, particularly in the housing segment, while companies only sought short-term loans and SMEs, according to a BdP survey.

This is one of the conclusions of the July edition of the Bank of Portugal's (BdP) Survey of Banks on the Credit Market, released this Tuesday (July 22) and in which, in addition to the balance for the second quarter, the outlook for the period from July to September is presented.

According to the results of the survey, which assesses supply and demand for the second quarter compared to the previous three months, there was an “increase in demand among private individuals, especially in the housing segment”.

The general level of interest rates and, to a lesser extent, consumer confidence and the regulatory and fiscal regime of the housing market [namely, exemption from IMT and public guarantee for young people] contributed to this rise in demand.

Consumer confidence also contributed slightly to an increase in demand for consumer credit and other purposes.

On the corporate side, there was a “slight increase” in small and medium-sized enterprises (SMEs) and in short-term loans, while large companies saw a slight decrease in demand for loans.

For the third quarter of the year, the BdP says that the sector anticipates a “slight increase in demand for loans by SMEs (across loan maturities) and by individuals for housing”.


Less restrictive housing loans from the banks.

On the supply side, the criteria for granting credit were practically unchanged in loans to companies, less restrictive in housing loans and “slightly more restrictive in loans for consumption and other purposes”.

According to the survey's conclusions, in housing loans, competition from other banks and the creditworthiness of borrowers “contributed slightly to less restrictive criteria”, although the latter factor resulted in more restrictive criteria in consumer credit and other purposes.

Among companies, although it wasn't enough to impact the criteria, the risks associated with the situation and the general economic outlook slightly increased the restrictiveness among SMEs.

In the analysis of credit terms and conditions, in the case of loans to companies - SMEs or large - and housing loans, there was a slight decrease in the interest rate charged and the spread applied to medium risk loans, while conditions remained the same for consumer credit and other purposes.

The proportion of rejected loan applications remained unchanged in the case of companies and increased slightly in the case of loans to individuals, both for housing and for consumer and other purposes.

For the third quarter, the Portuguese bank anticipates “slightly less restrictive lending criteria for SMEs” and “no major changes in large companies and loans to individuals”.








Source: https://www.idealista.pt
Crédito Habitação