The National Bank of Ukraine published its quarterly Bank Lending Survey, in which banks reported further growth in demand for corporate and consumer loans in Q4 2024 and said they expect their loan portfolios to expand over the next 12 months. The results reflect respondents’ views rather than the National Bank of Ukraine’s assessments or forecasts. Demand for corporate loans increased in Q4 2024 and across 2024, with respondents reporting their strongest demand estimates from large enterprises since 2021, supported by lower interest rates and needs for capital investment and working capital. In Q1 2025, banks expect demand to rise for all types of business loans except short-term loans. Household demand for consumer credit continued to grow in Q4 and over 2024, while mortgage demand benefited from improved real estate market prospects and lower rates, though respondents expect mortgage demand to decline in Q1 2025 while consumer loan demand is seen as unchanged. Lending standards were unchanged overall for businesses, but competition led banks to ease standards for corporates and slightly relax requirements for SMEs, alongside tightening for foreign-currency lending; plans for Q1 include easing standards for large enterprises and for short-term and UAH-denominated loans while tightening further for FX loans. For households, competition from non-bank financial institutions contributed to looser consumer and mortgage standards, with banks expecting easier consumer standards but tighter mortgage standards in Q1; approval rates increased for most business and consumer loans, while mortgage approvals declined at some large institutions. Respondents reported moderate increases in credit, operational and currency risks at end-2024 and projected a rise in all risk types except operational risk in Q1 2025. The survey covered 26 banks representing 96% of banking system assets, and the next release with expectations for Q2 2025 is scheduled for April 2025.

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