The yield on deposits will continue to decline, but commercial lending conditions have softened for the first time since 2021.

Ukrainian banks expect a further reduction in deposit rates for both individuals and businesses.

A survey on lending conditions showed that in the third quarter, the largest share of respondents since the beginning of 2022 predict an increase in business lending volume in the next 12 months. This stems from consumers actively applying for loans for the third quarter and commercial demand reaching its highest indicators since 2021. Exceptionally high interest was observed in long-term hryvnia loans for small and medium-sized businesses (SMEs).

For the fourth quarter, banks forecast further growth in demand for hryvnia corporate and retail loans. As well, in the third quarter, banks eased commercial credit standards for the first time since 2021, particularly for short-term and hryvnia loans and especially for SMEs.

The growth of competition in the market also prompted financial institutions to lower the requirements for consumer loans.