–Expect Further Tightening For Households, No Change For Business Loans
BRUSSELS (MNI) – Norway’s central bank Thursday reported that the
country’s banks had tightened their credit standards for businesses and
consumers in the last quarter of 2011.
Banks responding to Norges Bank’s Bank Lending Survey for 2011 Q4
cited their funding situation, capital adequacy requirements, their risk
appetite and the economic outlook, as the main reasons for tightening
credit standards.
Demand for credit from businesses decreased somewhat in the quarter
while at the same time demand from consumers increased somewhat, Norges
Bank reported.
The Banks reported higher lending margins to both households and
businesses and said they expect margins to continue rising.
Looking ahead, banks responding to the survey said they expected to
further tighten credit standards for households but that standards for
businesses would remain unchanged in the first quarter of 2012.
–Brussels bureau: +324-9522-8374; pkoh@marketnews.com
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