The Bank Lending Survey
In July 2012, the Czech National Bank published the results of the first round of its new quarterly Bank Lending Survey. The main aim of the survey is to obtain qualitative information about developments on the bank credit market.
The new survey captures banks’ perceptions about past and expected changes in the supply of and demand for loans. Just under 20 banks (including foreign bank branches), accounting for more than 90% of the domestic bank credit market, take part in the survey. The structured questionnaire contains 17 questions focusing on banks’ credit policy and on non-financial corporations’ and households’ demand for loans as perceived by banks.
Similar surveys (called Bank Lending Survey or Senior Loan Officers Opinion Survey) have been conducted in many countries for years. The standardised and regularly repeating set of questions allows for international comparison. As shown by Bondt et al. (2010)1, data obtained from the survey may also be a relevant leading indicator of loans and economic activity.
The results of the first round of the survey reveal that in 2012 Q2 banks tightened credit standards overall for corporate loans and consumer credit, while easing them slightly for house purchase loans2. Demand for bank loans increased (see Table III.5.1). In 2012 Q3, banks overall expect a tightening of standards and a rise in demand for corporate loans (although not across the board) and loans for house purchase. By contrast, a decline in demand is expected for consumer credit.
A detailed report on the results of the survey, including aggregate data and charts, will be published four times a year on the CNB website.
Tab. III.5.1 Changes in banks´credit conditions
Terms and conditions on the credit supply side generally tightened in Q2, except in the case of house purchase loans
(net percentages; positive value = tightening of standards/conditions or demand growth, negative value = easing of standards/conditions or demand decrease)
| Supply | Demand | |||
|---|---|---|---|---|
| Credit terms and conditions: of which | ||||
| Credit standards |
Average margin for loans |
Banks' margin on riskier loans |
Demand for loans |
|
| Loans to non-financial corporations | ||||
| II/12 actual | 14 | 6 | 23 | 7 |
| III/12 expecteda) | 18 | 6 | ||
| Loans for house purchase | ||||
| II/12 actual | -25 | -34 | 13 | 8 |
| III/12 expecteda) | 10 | 21 | ||
| Consumer credit | ||||
| II/12 actual | 10 | -29 | -15 | 26 |
| III/12 expecteda) | 0 | -29 | ||
Note: Net percentages are calculated as the difference between the percentage share of loans provided by banks reporting that standards/conditions have been tightened (or demand increased) and the percentage share of loans provided by banks reporting that standards/conditions have been eased (or demand decreased). The individual responses are thus weighted by the volumes of loans of a given type.
a) Banks´expectations for III/12 reported in the II/12 survey.
1"The Euro Area Bank Lending Survey Matters: Empirical Evidence for Credit and Output Growth,” Bondt et al., 2010, ECB Working Paper No. 1160.
2The results of the survey are expressed in terms of the net percentage (i.e. the difference between the market share of banks that tightened credit standards/conditions or indicated growth in demand and those that eased credit standards/conditions or indicated a decline in demand). The replies of each bank are weighted by its market share in the relevant segment of the credit market.