On the corporate segment, 1Q/2023 was marked by falling demand for lending compared with the previous quarter. In parallel, local lending institutions consider the credit risk for 7 of the 10 sectors related to non-financial companies rose in the first quarter of 2023. Energy is still considered the riskiest sector, followed by industry and constructions.
In the case of the population, demand for mortgages and land loans also dropped, while demand for consumer loans was moderately higher.
Population lending standards tightened in the first three months of the year. The reasons are related to expectations regarding the population’s financial situation, BNR’s monetary or prudential policy decisions and the risk associated with clients’ creditworthiness.
Instead, banks expect all types of loans granted to companies and the population to have their lending standards unchanged in the second quarter of 2023.
As regards demand, banks forecast a decline on the SME segment, while demand is expected to remain flat on the corporate segment.
In the case of the population, banks expect demand for mortgages and land loans to contract in the second quarter of the year, with applications for consumer loans set to remain relatively constant.
(English version by Catalina Apostoiu)