CBBiH: In the first quarter, corporate demand for loans will increase

(Patria) - Banks in Bosnia and Herzegovina have a slightly pessimistic view of household demand for loans in the first quarter, while simultaneously expecting an increase in corporate demand for loans, according to a survey by the Central Bank of Bosnia and Herzegovina.

According to this survey, in which eight largest banks in Bosnia and Herzegovina participated, a decrease in household demand for consumer and non-purpose loans is expected in the first quarter, while corporate demand for short-term, as well as long-term loans and/or credit lines, will increase.

For the first quarter, banks forecast a tightening of standards for household loans, while standards for approving short-term and long-term loans to companies will be eased.

Banks reported that in the fourth quarter of last year, household demand for housing loans increased, while demand for consumer and non-purpose loans was slightly lower than in the previous quarter.

In the fourth quarter of 2023, the net percentage change indicates that standards for approving housing loans were eased, while standards for consumer and non-purpose loans remained unchanged compared to the previous quarter.

In the last quarter of last year, the share of rejected household loan applications increased slightly compared to the previous quarter.

Regarding the conditions for approving household loans, reduced commissions and fees, extended deadlines contributed to easing, while conditions related to collateral requirements for household loans continued to tighten in the fourth quarter of last year.

Banks stated that corporate demand for loans continued to grow in the fourth quarter of 2023, and that demand for long-term loans is higher than demand for short-term loans.

In the fourth quarter of last year, the share of rejected corporate loan applications remained unchanged compared to the previous quarter.