Polish banks plan to tighten lending criteria

Polish banks plan to tighten the lending criteria for all types of loans in the third quarter, a survey of lending committee chiefs conducted by the Central Bank has shown.

Lenders are expected to especially tighten the criteria for small and medium-sized enterprises (SMEs), continuing a trend started in the second quarter. Demand for corporate credit is expected to fall in the case of SMEs, while increasing for large firms.

Consumer loans will also be harder to get owing to the rising number of NPLs (non-performing loans) although demand for credit is expected to increase.

When it comes to mortgages, banks expect to "mildly" tighten criteria after some tightening in the second quarter, while demand is expected to rise steeply following an increase in recent months.

The survey was conducted in early July among 23 banks whose aggregate share in enterprises' and households' liabilities constitutes some 89 percent of the banking sector’s portfolio.

The questions were addressed directly to the heads of the banks' loan committees.