The percentage of bankers expecting an increase in home loans to individuals over the next six months has risen to 52% in July, up from 50% in the previous month, according to the latest ‘Banking Monitor’ report published by research firm Mind&Roses. However, expectations for growth in corporate investment lending over the same period have decreased to 56%, down from 61%.
Consumer lending to individuals is also anticipated to rise over the next six months, though only 48% of those surveyed in July hold this view, compared to 57% a month earlier.
The overall month-on-month (m/m) rating of customer activity in the household credit market decreased by 5 points, standing at 23 points in July. The balance of ratings for customer activity in the consumer credit market decreased by 8 points m/m and fell by 15 points year-on-year (y/y). However, the balance of assessments for the home loan market increased by 3 points m/m, though it remains 23 points lower y/y. The three-month forecast index for the household credit market increased by 4 points m/m, reaching 52 points, the report states.
Regarding business working capital loans, 62% of bankers now expect increases, compared to 58% in the previous month. Expectations for growth in investment loans have fallen, with 56% of bankers anticipating an increase, down from 61% a month earlier.
The overall indicator for the assessment of entrepreneurial activity in the business lending market increased by 2 points m/m, reaching 12 points. For business activity in the investment loan market, the ratings index increased by 2 points m/m and is 37 points higher y/y. The ratings index for the working capital loan market fell by 3 points m/m but remains 10 points higher y/y. The forecast index for the business loan market increased by 7 points m/m, now standing 30 points higher, the report adds.
Source: Mind&Roses and ISBnews
