Lending criteria remain unchanged in 2nd quarter, demand for loans by households increases

Lending criteria to both businesses and households remained unchanged in the second quarter of 2021, but it is expected that they will become stricter in the third quarter of the year, according to the results of the Bank Lending Survey (BLS) for July 2021, published Tuesday by the Central Bank of Cyprus (CBC).

This development, said the CBC, “followed the tightening observed in 2020 in all loan types, as well as during the first quarter of 2021 in loans to households, mainly due to the pandemic and in particular the banks’ increased risk perception.”

Net demand for loans by firms remained unchanged in the second quarter of 2021, while net demand for loans from households increased.

Source: Cyprus News Agency