Reflecting optimism about the recovery from the “Covid-19” pandemic

“Central”: The demand for commercial loans is at the highest level

December 2021 data shows a significant increase in corporate and small business loans.

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The Central Bank revealed the growth of demand for commercial loans to its highest level ever during the last quarter of 2021, exceeding the record recorded in the third quarter of the same year, while the demand for personal finance recorded its highest level in seven years.

Recovering from the pandemic

In the results of its quarterly credit survey, the Central Bank stressed that the continued growth in demand for commercial loans reflects optimism about the recovery from the Corona virus (Covid-19) pandemic.

In the results of the survey, which was attended by senior credit officers in banks, the Central Bank stated that personal loans also witnessed a growth, and that the same borrowing appetite of individuals recorded an increase.

He continued, "Looking forward, expectations of loan demand in both the business and household sectors point to favorable credit conditions in the first quarter of this year."

A significant increase

The “Central” detailed that the data for the month of December 2021 shows a significant increase in corporate and small business loans, as well as a growth in demand for all types of loans, especially for large companies, and resident loans, supported by the growth of the economy in the Emirates, increased sales in the retail sector, as well as customer investments. In fixed assets and real estate market forecasts.

personal loans

He added that the results of the survey also indicated a strong desire by individual consumers to obtain loans during the past quarter, as the growth in demand for personal loans recorded its highest level in seven years, pointing out that the demand for personal finance included all categories, especially credit cards and housing loans. .

credit terms

Regarding credit conditions, the Central Bank explained that the results of the survey indicate that the criteria for granting loans to businesses have not changed on a large scale, but the outlook for the first quarter of this year is still positive, as respondents expected a strong increase in the demand for credit for all types of loans. .

The Central Bank pointed out that the respondents in the survey indicated a somewhat relaxed criteria for lending to individuals, given the change in their income, as well as the interest rate levels.

He added that expectations indicate that the demand for retail financing will continue to grow strongly during the first quarter of 2022.

Credit Survey Questionnaire

The Central Bank conducts a credit survey questionnaire every quarter and publishes its results quarterly, which include qualitative answers to a series of questions related to the conditions for granting loans, their level of growth, and the appetite of borrowers.

Senior credit officers from all banks and financial institutions within the UAE participate in the survey.

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