Bosnia’s central bank expects increased demand for corporate loans in 4Q23

By bne IntelliNews November 22, 2023

Bosnia & Herzegovina’s central bank expects that the demand for corporate loans will increase in the fourth quarter of 2023 after corporate lending rose in the third quarter, it said in a statement on November 22.

A survey on the expectations of Bosnia’s commercial banks showed that companies have higher interest in long-term loans than in short-term credits. On the other hand, consumer loans are expected to decline in the fourth quarter.

There was also a slight tightening of standards for consumer and non-purpose loans, while the requirements for granting housing loans remained unchanged.

In the third quarter, the share of rejected applications for household loans increased slightly compared to the previous quarter, while the demand for housing, consumer and non-purpose loans has increased.

The main factors affecting the increase in demand for loans are related to increased procurement of durable consumer goods, real estate purchases and other sources of household financing. On the other hand, household savings had a negative impact on demand for credits.

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