Banks have remained optimistic about the growth of business and household loan portfolios and expect loan quality to improve for the first time in a year.
This is evidenced by the results of the quarterly Survey on Bank Lending Conditions, Ukrainian News Agency reports.
According to the survey, demand for business loans increased in the second quarter, in particular for long-term loans and loans to large enterprises - for the first time since the beginning of the full-scale invasion.
Respondents predict an increase in demand for all types of business loans in the third quarter.
Household demand has increased for both mortgages and consumer loans, and banks expect this trend to continue.
Most banks assessed the debt burden of businesses as average.
At the same time, the share of financial institutions that considered household debt to be low decreased slightly.
Banks have eased credit standards for businesses for the first time since the third quarter of 2024, primarily due to increased competition.
Banks have also eased credit standards for households for the fifth consecutive quarter: for consumer loans, competition between banks and from non-bank financial institutions was a significant factor, and for mortgages, better prospects for the real estate market.
Respondents plan to further ease credit standards for businesses and households.
The level of approval of applications has increased slightly for both businesses and households. Banks have relaxed collateral requirements for mortgages and at the same time increased the size of consumer loans.
Respondents noted a noticeable increase in credit risk and a certain increase in operational risk, but for the first time in two years, they did not record an increase in currency risk. In the third quarter, an increase in currency and credit risks, as well as a certain increase in liquidity risk, is forecast.
The survey on bank lending conditions was conducted from June 16 to July 7, 2025 among bank credit managers.
26 financial institutions provided responses, their share in the total assets of the banking system is 96%.
The survey results reflect the opinions of respondents and are not estimates or forecasts of the National Bank of Ukraine.
As Ukrainian News Agency earlier reported, banks expect an increase in the volume of household funds, an increase in their value, and an improvement in maturity.
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