Demand for loans from individuals increased slightly in the third quarter in the housing segment, remaining practically unchanged in consumption and other purposes and also in companies, according to a study by the Bank of Portugal (BdP).
This is one of the conclusions of the October edition of the Banking Survey on the Credit Market of the Bank of Portugal (BdP), published this Tuesday and in which, in addition to the balance for the third quarter, the outlook for the period is analyzed. . It occurs from October to December.
According to the survey results, among individuals there was a “slight increase in the housing segment and practically no change in the consumption and other purposes segment.”
The regulatory and fiscal regime of the real estate market contributed, to a lesser extent, to this increase in demand for loans “and, to a lesser extent, to consumer confidence.”
Among companies, the Bank of Portugal noted that Loan demand remained “practically unchanged, among companies of different sizes and with different loan conditions”.
The results of the survey conclude that “the use of internal generation of funds as an alternative source of financing contributed slightly to reducing the demand for loans by companies.”
For the last quarter of the year, respondents predict an increase in demand for loans from companies, especially small and medium-sized enterprises (SMEs), and for long-term loans.
As for individuals, the forecast is a slight increase in demand in the housing segment and few changes in the consumer segment and other purposes.
On the supply side, the criteria for granting credit remained “practically unchanged in the segment of companies and individuals for the purchase of housing and for consumption and other purposes.”
About the terms and conditions of the credit, The BdP survey recorded a “slight decrease in the interest rate charged” and in the ‘spread’ applied to medium risk loans granted to SMEs.
Regarding the maturity of loans for the purchase of housing, there were “slightly more restrictive conditions”, without significant changes in the terms and conditions of loans for consumption and other purposes.
In the case of loans to companies, respondents considered that competition from other banking entities “contributed slightly” to the decrease in both the interest rate and the spread.
The third quarter of the year remained practically unchanged in the proportion of business credit applications that were rejected, while among individuals there was a slight increase in both credit segments.
For the last three months of the year, respondents estimate that the granting criteria will remain “practically unchanged, both in credit to companies and in credit to individuals.”
Source: Observadora
