The survey was conducted by the NBU among banks / Photo from bank.gov.ua
Requirements for borrowers were relaxed in the third quarter.
Banks in Ukraine maintain positive expectations on prospects for lending in the next year, as about 80% of respondents expect an increase in the volume of their loan portfolio in the next 12 months.
This was reported by the press service of the National Bank of Ukraine (NBU) following a survey conducted by the NBU among banks.
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"Banks maintain positive expectations on prospects of lending for the next 12 months. Estimates of growth in lending reached the pre-crisis level, or about 80% of respondents expect an increase in the loan portfolio in the next 12 months," it said.
In the third quarter, banks somewhat relaxed requirements for borrowers of consumer loans amid competition with other financial institutions (including from the non-bank financial sector), it said.
At the same time, further easing of requirements for households is now hampered by concerns about the deterioration of consumers' solvency.
"In July-September, the demand of enterprises, mainly small- and medium-sized ones, for short-term loans and for hryvnia loans increased. Debt restructuring, the need for working capital and investment fueled the demand. A decrease in rates also contributed to the increase in demand for loans: 74% of the surveyed banks noted a significant softening of price conditions on approved applications – interest rates were declining," it said.
In the third quarter, banks considered the currency risk to be the key one, it said.
Almost 40% of banks noted an increase in foreign exchange risk. Such a high value of foreign exchange risk acquired only at the time of the introduction of quarantine and in the crisis year of 2014. Only a third of banks indicated an increase in credit risk," it added.
The survey was conducted from September 17 to October 8, 2020, among credit managers of 24 banks, whose share in the total assets of the banking system of Ukraine is 90%.
Ukrainian banks' net profit in January-August 2020 decreased by 26.4% compared to the same period in 2019 and amounted to UAH 32.6 billion (US$1.15 billion).