Banks expect further growth in 2016

Cypriot banks expect demand for housing loans will accelerate further in the first quarter of 2016, according to a bank lending survey issued by the Central Bank of Cyprus (CBC).

The banks, according to their respondents expect demand for corporate loans and consumer and other loans to households to remain unchanged, the survey said.

According to the CBC, “demand for loans in Cyprus both by households and businesses recorded significant growth in 2015 compared with the previous years,” due to the broader interest rate level and increase in restructurings.

“According to bank expectations net demand for housing loans is expected to record further growth in the first quarter of 2016.” the CBC added, noting however demand in the other fields are expected to remain unchanged.

Furthermore, banks expect the criteria concerning the granting of loans will remain unchanged while criteria in the other euro area banks will ease.

Source: InCyprus