The National Bank of Ukraine published its quarterly Bank Lending Survey, showing that banks remain optimistic about growth in corporate and retail lending and, for the first time in a year, expect loan quality to improve. The results reflect respondents’ views rather than assessments or forecasts by the National Bank of Ukraine. Demand for corporate loans rose in Q2, driven in particular by long-term borrowing and lending to large enterprises, marking the first increase since the full-scale invasion, and respondents expect higher demand across all business loan types in Q3. Household demand increased for mortgages and consumer loans, with expectations that the uptrend will continue; at the same time, lending standards were relaxed for businesses for the first time since Q3 2024 and for households for the fifth consecutive quarter, with competition cited as a key driver and a better real estate outlook supporting mortgage easing. Approval rates edged higher for both corporate and household applications, mortgage collateral requirements were eased, and consumer loan sizes increased; respondents also reported a tangible rise in credit risk and some increase in operational risk, while reporting no growth in foreign exchange risk for the first time in two years and expecting foreign exchange and credit risks to rise in Q3 alongside a moderate increase in liquidity risk. The survey was conducted from 16 June to 7 July 2025 among loan managers at 26 financial institutions representing 96% of banking system assets. A bank funding survey covering expectations for Q4 is scheduled for publication in October.
National Bank of Ukraine 2025-07-23
National Bank of Ukraine survey finds banks expect loan portfolios to expand and loan quality to improve
The National Bank of Ukraine's quarterly Bank Lending Survey shows optimism among banks for growth in corporate and retail lending, with expectations of improved loan quality for the first time in a year. Demand for corporate loans rose in Q2, driven by long-term borrowing and lending to large enterprises, while household demand increased for mortgages and consumer loans. Lending standards were relaxed, approval rates increased, and mortgage collateral requirements eased, though credit and operational risks rose, with no growth in foreign exchange risk reported for the first time in two years.