Large banks expected to change loan criteria www.ubpost.mn
Mongol Bank has released new insights into the nation’s credit landscape, gathered through a recent survey conducted among commercial banks. The survey, which took place from October 16 to 23, examined the evolving criteria, conditions and demand for loans across the banking sector, providing a forecast for the coming months.
According to the survey results, large banks have made subtle adjustments to their credit criteria over the past three months, particularly by easing consumer loan requirements, while keeping business loan criteria stable. Meanwhile, medium and small banks have held their criteria unchanged for both business and consumer loans. Looking forward, the survey indicates that large banks are expected to relax their credit criteria slightly across the board. In contrast, medium and small banks intend to maintain their existing standards.
The conditions for both business and consumer loans have remained stable over the past three months. However, the survey reveals a potential shift ahead, with large banks expected to introduce slightly stricter loan conditions for individual borrowers in the next three months. Medium and small banks, on the other hand, are anticipated to uphold their current loan terms without modification.
Demand for loans has seen a modest rise at large banks in the past quarter, a trend projected to continue over the coming months. Small and medium-sized banks, however, reported no significant changes in loan demand and anticipate this stability will persist through the end of the year.
These findings underscore a potential shift in the credit market, with large banks expected to take a more flexible approach in their criteria while tightening conditions slightly for individuals. This, coupled with rising demand, indicates that the largest banks may be positioning themselves to meet growing borrower interest in the near term, whereas medium and small banks are expected to retain a cautious stance.
Published Date:2024-11-11