Banks have improved their expectations about the prospects for lending: the proportion of financial institutions expecting growth in lending has resumed to pre-war levels. This is evidenced by the results of a quarterly survey of banks on lending conditions, conducted by the National Bank of Ukraine..

Thus, the demand for corporate loans in the first quarter increased the need for working capital, but changes in interest rates held it back. Banks expect growth in demand for all types of business loans in Q2. Most of all - for loans to small and medium-sized businesses, short-term and hryvnia loans.

Respondents also predict an increase in demand for retail loans in the second quarter. Most for mortgages. Household mortgage demand continues to rise for second straight quarter on improved consumer sentiment and savings. At the same time, the recovery in demand slows down the restrained expectations of the development of the real estate market..

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Banks do not expect deterioration in the quality of corporate loans over the next 12 months, however, for households, the quality will deteriorate slightly.

Banks tightened corporate lending standards in Q1. Most of all - for long-term and foreign currency loans. Standards to be strengthened in Q2 and beyond. To a greater extent - for large enterprises and long-term loans. At the same time, financial institutions are planning to slightly loosen lending standards for SMEs..

For the first time since the fourth quarter of 2021. Banks have softened the standards of loans to the population. Mostly for consumer loans. This was facilitated by improved expectations of economic activity, better exchange rate expectations and an increase in the population's solvency.

Mortgage standards eased on increased bank competition and lower inflation expectations.

Banks plan to further ease credit standards for consumer loans next quarter. However, for mortgages - to strengthen.

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" Answers were given by 26 financial institutions, whose share in the total assets of the banking system is 96%. The results of the survey reflect the opinion of the respondents and are not estimates or forecasts of the National Bank.