The conditions for the granting of loans have been tightened more than expected, and in the case of corporate clients, at most from the third quarter of 2023.
Perceived risks to economic prospects and banks’ lower tolerance for risk were the main factors in that process, and among the reasons, the banks particularly highlighted the pressure created by the development of the situation on the geopolitical and energy level, leading them to tighten conditions, the ECB report states.
Some banks cited high energy consumption and events in the Middle East among the reasons for the stricter conditions for granting loans to companies.
In the quarter ending in June, banks expect a widespread and more pronounced net tightening of credit standards, according to ECB research.
However, demand for loans decreased slightly in the first three months of this year, contrary to banks’ expectations, as companies reduced investments.
Certain banks pointed out that the current energy price movements are driving companies’ higher demand for liquidity, while the others singled out greater uncertainty and investment delays among the factors dampening demand, the ECB’s quarterly survey showed.
(Vijesti.ba)
