A small increase in demand for loans from small and medium enterprises is expected in the third quarter of the year, while due to competitive pressures, banks’ margins for conventional loans have decreased.

The above were the most important findings of the bank lending survey for the second quarter of 2024 carried out by the Bank of Greece.

More specifically, during the second quarter of 2024, the criteria for granting loans to non-financial enterprises (NFCs) remained unchanged compared to the first quarter of 2024, a development in line with the expectations expressed in the previous quarter’s survey. In addition, the banks estimate that the criteria will remain unchanged during the third quarter of 2024.

The total ones conditions for granting loans to MNEs became somewhat more relaxed compared to the first quarter of 2024, as, due to competitive pressures, banks’ margin for conventional loans has decreased.

In the second quarter of 2024, overall loan demand from MFIs remained unchanged, although financing needs for stock formation and working capital increased somewhat. In the next quarter, overall loan demand is expected to remain largely unchanged, although a small increase in demand from small and medium-sized enterprises is forecast.

The proportion of business loan applications rejected was unchanged from the previous quarter.

Regarding loans to households, their granting criteria remained unchanged compared to the first quarter of 2024. The overall conditions for granting housing and consumer loans also remained unchanged. The criteria for granting housing and consumer loans are expected to remain unchanged during the third quarter of 2024.

Demand for housing loans remained unchanged, while for consumer loans almost unchanged. For the third quarter of 2024, demand for housing and consumer loans is expected to remain unchanged. In the second quarter of 2024, the proportion of mortgage and consumer loan applications rejected was unchanged