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Banks expect to tighten housing loans

Banks expect to tighten housing loans

According to the Oesterreichischer Nationalbank (OeNB), Austrian banks expect another slight increase in demand for credit in the fourth quarter. There is a demand for long-term loans and loans to large companies in particular, according to a survey published today by OeNB on the lending business of the country’s leading banks.

The demand for housing loans from private households remains strong. Internal allocation guidelines and credit terms remained largely unchanged in the first three quarters – for both housing loans and consumer loans. But in the fourth quarter, financial institutions expect a slight tightening of standards for issuing housing loans, according to a survey of eight institutions in Austria conducted in the second half of September.

Demand for corporate loans has increased moderately since the second quarter due to the economic recovery from the Covid-19 pandemic. The main reason for the high demand is the financing requirements for fixed investments. Altogether, however, the lending criteria for loans hardly changed in the first three quarters. Average risky corporate loan margins were only slightly reduced due to the competitive situation.

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