The Central Bank of Cyprus has released the latest installment of its Bank Lending Survey for the month of July, revealing an increased local demand for all loan categories during the second quarter of the year.
Specifically, the increase in the net demand for loans from enterprises on the island – noted for the first time since 2011 in the first quarter of the year – continued at the same levels as the previous quarter.
At the same time, net demand for loans from households for housing rose for the first time since the second quarter of 2010.
Since the first Bank Lending Survey in 2008, an increase was recorded for the first time in the net demand for loans for consumer credit and other lending.
According to the Survey, local banks expect that the net demand for loans in the third quarter of 2015 will remain unchanged in Cyprus, while in the eurozone it will further increase.
Furthermore, the Survey noted that during the period, credit standards for loans to enterprises and households remained unchanged in Cyprus, while they eased in the eurozone.
Indeed, banks participating in the survey expressed their expectation that standards would continue to remain unchanged into the third quarter of the year, while they will tighten in the eurozone.
The Bank Lending Survey is a qualitative survey of bank lending in the euro area. Its main objective is to improve the Eurosystem`s knowledge of financing conditions in the euro area. The survey is based on a representative sample of euro area banks and covers a broad range of topics relating to loans to enterprises and households.
The questionnaire for the survey is undertaken on a quarterly basis and the national results are published by the Central Bank of Cyprus, soon after the publication of the euro area results by the European Central Bank.
Specifically, the increase in the net demand for loans from enterprises on the island – noted for the first time since 2011 in the first quarter of the year – continued at the same levels as the previous quarter.
At the same time, net demand for loans from households for housing rose for the first time since the second quarter of 2010.
Since the first Bank Lending Survey in 2008, an increase was recorded for the first time in the net demand for loans for consumer credit and other lending.
According to the Survey, local banks expect that the net demand for loans in the third quarter of 2015 will remain unchanged in Cyprus, while in the eurozone it will further increase.
Furthermore, the Survey noted that during the period, credit standards for loans to enterprises and households remained unchanged in Cyprus, while they eased in the eurozone.
Indeed, banks participating in the survey expressed their expectation that standards would continue to remain unchanged into the third quarter of the year, while they will tighten in the eurozone.
The Bank Lending Survey is a qualitative survey of bank lending in the euro area. Its main objective is to improve the Eurosystem`s knowledge of financing conditions in the euro area. The survey is based on a representative sample of euro area banks and covers a broad range of topics relating to loans to enterprises and households.
The questionnaire for the survey is undertaken on a quarterly basis and the national results are published by the Central Bank of Cyprus, soon after the publication of the euro area results by the European Central Bank.