Demand for mortgages rose in the first quarter of the year, but to a lesser extent than expected. This emerges from the investigation of bank lending carried out by the Bank of Greece.
According to the research data, the criteria for granting mortgage loans are expected to become somewhat more relaxed during the second half of 2022, while for consumer loans to households – whose demand remained almost unchanged – no change is expected.
The criteria for lending to non-financial corporations (MFIs) remained unchanged compared to the quarter of 2021, a development in line with the expectations expressed in the survey of the previous quarter. In addition, banks estimate that the criteria will remain unchanged during the second half of 2022.
The overall lending terms to SMEs remained unchanged compared to the fourth quarter of 2021.
The total demand for loans from SMEs, in the first quarter of 2022, remained almost unchanged, although loans to small and medium-sized enterprises increased to some extent, due to needs for stocks and working capital. Over the next quarter, aggregate demand for loans from both small and medium-sized enterprises and large enterprises is expected to remain unchanged. The proportion of rejected business loan applications remained unchanged from the previous quarter.
Source: Capital
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