Banking Barometer: Credit demand continues to be stronger

The Confederation of Finnish Financial Services today released a fresh that Bank Barometer. According to it, the demand for corporate loans is expected to have grown in the second quarter compared to the same period last year.

Demand for credit is also expected to increase in the third quarter. The Bank Barometer is published quarterly and is, for example, the responsibility of bank and branch directors, branch managers and credit managers.

Household credit demand is growing in almost every area

Household credit demand is expected to increase in almost all areas. Consumers are expected to apply for a loan especially for the renovation or renovation of their own home. In addition, home loans are expected to grow significantly, as well as credit demand for investment and consumer goods.

Demand for loans for business training for households is expected to be slower than at the same time last year.

Corporate loan applications are expected to continue to be more active

Banking barometer respondents also estimate that corporate credit demand is growing. Compared to the second quarter of last year, credit demand is expected to pick up in the second quarter of 2016. Credit demand is also expected to continue to grow stronger in the third quarter of 2016 compared to the same period in 2015.

Restructuring, working capital requirements, and acquisitions and restructurings are expected to continue to be the major causes of corporate loan applications in the next quarter. Credit demand for investments is also estimated to increase.

If you are thinking about a loan, be sure to compare and tend the loans first:

The use of loan flexibility is declining

The use of loan flexibility options such as repayment gratuities, benchmark swaps and early repayments is clearly on the decline, according to respondents to the Bank Barometer.

Respondents for flexibility are the only ones who say that the use of installments is still on the rise, albeit clearly lower. Free months are provided by many lenders. In some cases, for example, they are part of the Good Finance service portfolio.

The downward trend, in turn, is the utilization of loan reference rate swaps and early repayment of the loan.

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