Ukrainian banks are planning to ease lending conditions for households and businesses.

According to the NBU, Ukrainian banks have eased lending standards for households for the fifth consecutive quarter and for businesses for the first time since the third quarter of 2024. In the second quarter, banks generally simplified the terms for providing loans to businesses. This is especially true for short-term loans and foreign currency loans.

The move to ease lending was mainly driven by large banks, which have become more flexible due to increased competition. Conditions for small and medium-sized enterprises have also improved, partly thanks to a more stable inflation outlook. In the third quarter, banks intend to further simplify lending terms for businesses – particularly for long-term loans, hryvnia loans, and loans for small and medium-sized businesses.

Regarding the household loans, the terms for obtaining mortgage and other consumer loans have been improving for borrowers for five straight quarters, fueled by strong competition among banks and non-bank lenders, as well as improvements in the real estate market. In the third quarter, banks plan to further ease conditions for consumer loans and mortgages.