Central Bank of Chile survey finds Q4 2024 credit supply broadly stable with tighter terms for construction and real estate

The Central Bank of Chile published the results of its Bank Credit Survey for the fourth quarter of 2024, indicating that overall credit supply was broadly unchanged from the prior quarter, with somewhat more restrictive conditions for housing loans and for lending to real estate and construction companies. Demand was perceived to have strengthened for mortgage and consumer credit, while firms’ demand for bank credit remained relatively stable overall. On credit standards, more than 80% of surveyed banks reported no material changes in consumer and housing lending; for consumer credit, 8% reported more flexible conditions and 8% reported tighter conditions, while 18% reported tighter housing credit standards. For corporate lending, all surveyed banks reported unchanged standards for small and medium-sized enterprises, and for large companies the share reporting more flexible standards fell to 14% (from 21%) and those reporting tighter standards fell to 0% (from 7%). By sector, standards tightened for construction and real estate firms, with the share of banks reporting more restrictive standards rising to 20% for construction (from 0%) and to 30% for real estate (from 10%). On demand, the share of banks reporting stronger consumer credit demand rose to 33% (from 17%), while 17% perceived weaker demand. For housing credit, 27% perceived stronger demand (from 0%) and 9% perceived weaker demand (from 36%). Demand from real estate and construction firms was still seen as declining, but less than in previous quarters, with the share reporting lower demand falling to 20% for both real estate (from 40%) and construction (from 30%).