According to the NBP survey addressed to the chairmen of credit committees, we can expect easing of lending policy and a significant increase in demand for loans in the current quarter. Both in the segment of loans to enterprises and to households (housing loans and consumer loans) in the second quarter of 2015, banks expect higher demand for loans.

Home loans

As expected, in the first quarter of this year the banks significantly tightened their lending policy, and the main reason was the increase in the own contribution required by banks in accordance with Recommendation S of the Polish Financial Supervision Authority.

This criterion indicated 71 percent of the banks’ net (net percent – the difference between the percentage of responses showing opposite directions of change, weighted by the bank’s share in the market segment). At the same time, banks slightly reduced their loan spreads (net 12 percent). A significant drop in demand for housing loans was also noticeable, and the main reasons were changes in the criteria and conditions for granting them.

A slight easing of lending policy (13 percent net) and a significant increase in demand for housing loans are expected in the second quarter of 2015. This answer was indicated in 52 percent of the banks’ net.

Consumer loans

On the consumer loan market, the majority of banks (36 per cent net) reduced their loan margins, but at the same time non-interest loan costs increased significantly (73 per cent net). Such changes could have been expected, and the main reason is the reduction of interest rates by the Monetary Policy Council.

The lombard rate of 2.5 percent reduced the maximum interest rate on loans to 10 percent. With lower interest income, banks are looking for additional income in other loan costs, such as commissions. At the same time, in the first quarter, the banks also experienced a noticeable increase in demand for consumer loans – this was the answer given by 22 percent of the net banks.

Demand is also expected

Demand is also expected

To increase in this market segment in the second quarter of this year (60 percent of the banks’ net), while 12 percent of the banks also point to further easing of lending policy.

Corporate loans
In the first quarter of this year, most banks did not significantly change the criteria for granting loans to enterprises. However, most (49 percent net) reduced margins and non-interest loan costs (16 percent net).

In the current quarter, banks are still planning to ease lending policy for enterprises.

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