Bank of Greece reports largely unchanged lending standards and loan demand in the first quarter of 2026 with some tightening in housing loan terms

The Bank of Greece published a supervisory update showing that bank lending conditions were broadly stable in the first quarter of 2026. Credit standards for loans to non-financial corporations remained almost unchanged, as did overall terms and conditions and overall demand for corporate loans. For households, credit standards were unchanged for both housing and consumer loans, while terms and conditions tightened somewhat for housing loans and remained unchanged for consumer credit. Demand for both housing and consumer loans was unchanged. For corporate lending, the ratio of rejected applications was unchanged from the previous quarter. Competitive pressures narrowed margins, but this did not materially alter overall terms and conditions for loans to non-financial corporations. In household lending, the tightening in housing loan terms reflected higher charges other than interest rates. The ratio of rejected housing loan applications remained almost unchanged, while the rejection rate for consumer credit was unchanged. Banks expect credit standards to remain unchanged in the second quarter of 2026 for both non-financial corporations and households. Demand from non-financial corporations is also expected to remain almost unchanged overall, although demand from small and medium-sized enterprises is anticipated to increase, while demand for housing and consumer loans is expected to remain unchanged.