In the first quarter of 2021, the conditions for granting credit to households and businesses continued to be tightened, but with a slightly lower intensity compared to 2020, according to the results of a survey on bank credit for the first quarter 2021 led by the Central Bank. of Bosnia and Herzegovina (CBBH).
The published results show that with businesses, there were no differences in the changes for long-term and short-term lending, and the main reasons for the tightening of credit conditions were factors banks linked to. the perception of risk. At the same time, the results indicate a decrease in demand for business loans, which is particularly evident for long-term loans. In terms of demand for short-term loans, after a slight increase in the fourth quarter of 2020, in the first quarter of 2021, this trend reversed and a decrease in demand was recorded.
In the case of loans to households, the tightening of credit conditions is noticeable, which is particularly true for mortgage loans. The reasons are also closely related to the perception of increased risk by banks, while on the other hand, banks have indicated that increased competition in the market is forcing them to ease credit conditions. Regarding the demand for household credit, a very small decline was recorded, which shows that the demand in this segment is gradually normalizing after the unfavorable trend of 2020, and these banks suggest that the demand will increase slightly in the second quarter of 2021.
More detailed explanations and full results can be found under Statistical Information on the CBBH website, link https://www.cbbh.ba/Content/Read/8
The CBBH recently launched this research aimed at collecting information and better understanding the evolution of commercial bank lending standards and conditions and examining the supply and demand for loans in Bosnia and Herzegovina, which in line with best practice of the European Union, informs the public.