Banks granted micro-entrepreneurs in November this year. 13.9 thousand loans (up 21.7% y/y) with a total value of PLN 1.94 billion (up 32.6% y/y), reported the Credit Information Bureau (BIK). In January-November, the number of loans granted to micro-businesses amounted to 142.7 thousand (+13.3%) and their value reached PLN 20.47 billion (+12.5%).
Banks granted more working capital loans (+40.2%) and investment loans (+3.2%), and fewer overdrafts (-2%). In terms of value, working capital loans (+56.6%) and investment loans (+83.3%) showed growth dynamics. Negative dynamics were characterised by overdrafts (-6.6%).
In January-November 2023, compared to the same period last year, banks granted more loans by (+13.3%) to micro-entrepreneurs and for an amount higher by (+12.5%). During the period, banks granted fewer by (-7.3%) and for a lower amount (-7.3%) of investment loans. The increases in terms of number and value relate to working capital loans by respectively: (+21.1%) and (+20.3%) and overdrafts: (+0.2%) and (+4.9%), also indicated.
November’s reading of the Microenterprise Credit Quality Index was 5.24% in value terms. It is still at a reasonably safe level. Product Quality Indices in November 2023 were as follows in value terms: investment loans 2.96%, overdrafts 3.92%, and working capital loans 9.06%. The overall Quality Index improved (decreased) by (-0.41) in November 2023 compared to October 2023. In contrast, in the 12-month period, i.e. compared to November 2022, the overall Index improved (decreased) by (-0.46). The Indices of all loan types also improved (declined) over the 12-month period: investment loans (-0.82), working capital loans (-0.72) and overdrafts (-0.09).
According to the Quality Index readings, the worst (highest level of the Index) loans in November 2023 were repaid by manufacturing companies – with an Index value of 5.61% – and trading companies (5.45%). The best (lowest) reading in November was recorded by the Quality Index of companies in the construction sector, at 4.73%. Compared to November 2022, the Index only worsened (increased) for manufacturing companies (+0.52). The Index improved (decreased) in the service industry (-0.87) and construction (-0.61), the Bureau also reported.
Source: BIK and ISBnews
