Budapest, 7 February 2025 — Based on the responses to the Lending Survey, banks left corporate credit conditions broadly unchanged in 2024 Q4, and they do not plan to apply any changes in the next six months. Nearly one-fifth of banks tightened financing standards of office buildings and logistics centres. However, looking ahead, no further changes are planned in the conditions of credit accessibility in any of the commercial real estate segments. According to the institutions surveyed, the demand for corporate loans did not change significantly in the quarter; however, after the declining or stagnating trend in credit demand in recent quarters, demand for forint loans is expected to be stronger in 2025 H1, partly as a result of the Sándor Demján Programme. Nearly half of the banks saw an increasing credit demand for housing projects and a similar percentage expect further recovery in 2025 H1. In 2024 Q4, banks left housing loan conditions unchanged, while 41 per cent eased their consumer credit conditions. Looking ahead, two-thirds of the banks would increase the spread on housing loans, while they do not plan to apply any changes to consumer credit standards. In both retail segments, the rebound in demand, seen in the quarter, is expected to continue in 2025 H1.
The Magyar Nemzeti Bank conducts a questionnaire-based survey in each quarter among senior loan officers of domestic banks to report on current changes in credit demand and credit supply. Banks’ experts responded to the MNB’s 2024 Q4 Lending Survey between 2 and 17 January 2025.
The banks participating in the Lending Survey left credit conditions broadly unchanged in 2024 Q4 in all company size categories. Due to challenges facing some industries, some banks applied closer monitoring solutions in 2024 Q4. Looking ahead to 2025 H1, the respondent institutions do not intend to change corporate credit conditions due to market share objectives and increasing competition. In Q4, banks reported an unchanged demand for corporate loans, only a net 4 per cent perceived a decline in demand, mainly for forint loans and long-term loans. A net 10 per cent of banks experienced a decline in credit demand from small and micro enterprises; however, 17 per cent reported an increase in demand from large and medium-sized companies. Looking ahead to the next six months, 25 per cent of banks expect credit demand to pick up partly as a result of the Sándor Demján Programme, launched in January 2025, which is expected to be reflected in all company size categories, with increased demand for forint loans in particular.
Overall, banks did not change the standards on commercial real estate loans in 2024 Q4; however, 19 and 16 per cent of banks tightened their standards on loans for office buildings and logistics centres, respectively, due to challenges facing the industry. In 2025 H1, banks do not intend to change the conditions of credit accessibility in any of the commercial real estate segments. In 2024 Q4, 42 per cent of the banks perceived an upturn in demand for housing project loans, while 36 per cent reported a decline in demand for loans to finance office buildings, which 14 per cent of banks expect to fall further in the next six months. For housing projects alone, 57 per cent of banks expect credit demand to increase reflecting an improving appetite for real estate investment.
Based on the responses to the Lending Survey, overall, banks left credit conditions on housing loans unchanged in 2024 Q4; however, a net 28 per cent reduced the spread on housing loans. A net eight per cent of responding institutions envisaged easing for the next six months in terms of the debt cap rule; however, a net 67 per cent of institutions surveyed, would tighten price terms. In 2024 Q4, 43 per cent of the banks perceived an upturn in credit demand in the housing loan market from Q3, and looking ahead an increasing percentage, a net 52 per cent, expect demand to continue to pick up.
A net 41 per cent of banks eased standards on consumer loans in 2024 Q4 by reducing spreads, a decision driven by market share objectives. However, the standards on secured consumer loans were tightened by a net 13 per cent, as a similar proportion indicated a continuation of this trend. Nonetheless, no changes are planned to the conditions of unsecured consumer loans in the next six months. A net 37 per cent of the institutions surveyed saw a pick-up in demand for consumer loans in 2024 Q4, with a net 13 per cent expecting a continued increase in demand looking ahead to 2025 H1.
In the Lending Survey, we use the so-called net change indicator, expressed as a percentage of respondents, to indicate changes. This indicator is calculated as follows: market share-weighted ratio of respondents projecting a change (tightening / increasing / strengthening) minus the market share-weighted ratio of respondents projecting a change in the opposite direction (easing / decreasing / weakening).
The detailed findings of the Lending Survey and the set of charts are available on the MNB’s website at: