The apex bank, in its Q1 2019 Credit Conditions Survey Report, stated that “the demand for total unsecured lending from households increased in the first quarter (Q1), and was expected to increase in the next quarter(Q2), despite lenders’ resolve to leave the credit scoring criteria unchanged, the proportion of approved unsecured loan applications decreased in the current quarter (Q1) but is expected to increase in the next quarter.”
According to the apex bank, the results of the Credit Conditions Survey Report are based on lenders’ own responses to the survey, and do not necessarily reflect the views of CBN on credit conditions.
It states: “The Q1 2019 credit condition survey for households, small businesses and corporate entities indicated an increase in availability of secured credit to households and corporate entities, and increased availability of unsecured credit to households. Spreads on overall secured lending to household, as well as on secured lending to corporates, remained unchanged in Q1 2019. Lenders reported that demand for total unsecured lending from households increased in the current quarter, and was expected to increase in the next quarter.
Demand for corporate lending increased across all firm sizes except for OFCs in the review quarter.
“Lenders reported that the overall spreads on secured lending rates to households relative to MPR remained unchanged in Q1 2019, but was expected to narrow in the next quarter. Spreads for all lending types remained unchanged in Q1 2019, but were anticipated to narrow in the next quarter.
“Households demand for lending for house purchase decreased in Q1 2019 but was expected to increase in the next quarter. For the current quarter, households demand for prime lending, buy to let lending and demand for other lending decreased. They were, however, expected to increase in Q2 2019.
“Households demand for consumer loans rose in the current quarter and is expected to rise in the next quarter. Demand for mortgage/remortgaging from households fell in Q1 2019 but is expected to rise in Q2 2019.”
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