Banks increase lending and ease requirements for borrowers.

Banks have significantly improved their expectations regarding the development of lending in Ukraine. In the second quarter bankers predict an increase in demand for retail loans and mortgages most of all, according to an NBU survey.

Reports indicate that about 65% of respondents expect growth in their corporate loan portfolio and 38% in their retail portfolio. The regulator drew attention to the fact that the share of banks expecting an increase in the volume of business lending has returned to the pre-war level.

In addition, for the first time since the fourth quarter of 2021, banks eased lending standards, primarily for consumer loans. This was facilitated by improved economic activity expectations, better exchange rate expectations, and growth in the population’s solvency.

Furthermore, mortgage standards have eased due to increased bank competition and lower inflation expectations.

First quarter data shows that the approval level for individuals’ applications for both consumer and mortgage loans increased.