Banks in Bosnia and Herzegovina have a slightly pessimistic view of the population’s demand for loans in the first quarter, while at the same time they expect an increase in the demand of companies for loans, according to a survey by the Central Bank of Bosnia and Herzegovina.
According to this survey, in which the eight largest banks in Bosnia and Herzegovina participated, in the first quarter it is expected that the population’s demand for consumer and non-purpose loans will decrease, while there will be an increase in the demand of companies for short-term and long-term loans and/or credit lines.
For the first quarter, banks predict that there will be a tightening of standards for loans to households, while the standards for approving short-term and long-term loans to companies will be eased.
Banks reported that in the fourth quarter of last year there was an increase in the population’s demand for housing, while the demand for consumer and non-purpose loans was slightly lower than in the previous quarter.
In the fourth quarter of 2023, the net percentage change indicates that there was an easing of the standards for approving housing loans, while the standards for consumer and non-purpose loans remained unchanged compared to the previous quarter.
In the last quarter of last year, the share of rejected applications for household loans slightly increased compared to the previous quarter.
Regarding the conditions for granting loans to households, reduced commissions and fees, extended deadlines had an effect on easing, while the conditions related to collateral requirements for loans to households continued to tighten in the fourth quarter of last year.
The banks stated that the demand of companies for loans continued to grow in the fourth quarter of 2023, as well as that the demand for long-term loans is greater than the demand for short-term loans.
In the fourth quarter of last year, the share of rejected requests for loan approval to companies remained unchanged compared to the previous quarter, Srna news agency reports.
