OREANDA-NEWS. Banks’ willingness to reduce lending rates on loans in the midterm, while retaining moderately tough requirements to borrowers’ financial position and loan collateral, paves the way to gradual recovery of borrowing demand without prejudice to loan portfolio quality pursuant to the findings of quarterly all-Russian survey of major Russian banks published in bulletin 'Change in Bank Lending Conditions’.

Against the backdrop of lower lending rates the Russian banks predict higher demand for loans in the second quarter and third quarter of 2016.

They anticipate a noticeable demand for loans in all credit market segments, but most of all the banks are optimistic about the prospects of consumer lending development.

According to the survey findings, bank lending conditions will soften up in the second and third quarters of the current year. First of all, in the banks’ opinion, this will apply to consumer lending and mortgage lending. Lending rates will continue their reduction in these segments, softer collateral requirements and a wider range of lending programs are also possible.

Big companies will mostly keep on reducing lending rates as a focal point of softening lending conditions in the second and third quarters. Non-price lending terms for corporate borrowers remain moderately tough due to their unstable financial position. Lending to small and medium enterprises is also anticipating a similar situation.

At the Bank of Russia estimates, growth areas are likely to emerge in lending in import substitution and export-oriented industries (agriculture, food, chemicals, woodworking).