Credit standards for loans to non-financial corporations remained broadly unchanged in the fourth quarter of 2015, compared with the third quarter of 2015, in line with expectations, the Bank of Greece said. Banks expect that credit standards will remain unchanged in the first quarter of 2016.
Despite the unchanged credit standards, the conditions and terms for loans to non-financial corporations tightened somewhat in the fourth quarter of 2015 compared with the previous quarter. The demand for loans decreased slightly in the fourth quarter of 2015, as opposed to the positive expectations. The decline was due to decreased financing needs of non-financial corporations for both working capital and fixed investment. Demand for loans is expected to improve in the first quarter of 2016.
In the fourth quarter of 2015, credit standards for loans to households remained basically unchanged compared with the third quarter of 2015. It is noted that in the previous survey banks had stated that they expected a tightening of standards for consumer credit. As regards the expectations for the first quarter of 2016, credit standards for all loans to households are expected to remain unchanged. The terms and conditions for loans to households remained also unchanged in the fourth quarter of 2015. The demand for loans to households increased in the fourth quarter of 2015, in line with expectations expressed in the previous survey round. Moreover, the demand is expected to increase further in the first quarter of 2016.
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