Polish banks report fall in demand for credit: central bank survey

Demand for both corporate and domestic credit in Poland fell in the third quarter compared with the previous three months, with demand for housing loans falling at its fastest pace since 2003, a central bank survery of banks showed on Monday. The survey, coming after other recent data adds to worries regarding Poland's outlook for economic growth.
The survey showed weaker demand for credit in the three broad categories of corporate, housing and consumer credit. "The fall in demand from large companies ... was related to a lower demand for investment financing," the central bank said in its quarterly survey of banks' credit officers. "For the first time in over three years the fall in demand was also caused by a lower need for financing stocks and working capital," the central bank said, adding that credit demand from small and medium firm was unchanged.
Economic growth data published in August showed that Poland suffered its biggest contraction in investment for almost four years in the second quarter of this year as political uncertainty discouraged firms from spending at a time of reduced European Union aid. The credit survey released on Monday also showed that the demand for mortgages fell steeply in the third quarter as a result mainly of regulatory changes including new restrictions regarding the loan-to-value ratio and an end of a government programme supporting housing demand.