The Banking Survey on the Credit Market states that the reduction in demand for credit by Small and Medium Enterprises (SMEs) reflected a lower need for investment financing, although this factor did not impact the aggregate evolution of loan applications by companies.

In the individual segment, banks recorded a slight decrease in demand for mortgage loans, while demand for consumer loans remained practically unchanged.

The reduction in demand for home purchase loans was mainly justified by the outlook for the housing market and the general level of interest rates.

In consumption and other purposes, consumer spending financed through loans secured by real estate assets made a slight contribution to the increase in demand, but without impacting the aggregate.

For the third quarter, banking institutions anticipate a slight increase in demand for credit from SMEs, across loan maturities.

In contrast, they expect a further decrease in demand for mortgage loans, while consumer credit applications should continue.

Regarding supply, there were slightly more restrictive credit granting criteria for SMEs and long-term loans.

For individuals, slightly more restrictive mortgage loan criteria and no changes in consumer credit and other purposes.

In the case of SMEs, "the perception of risks associated with the situation and prospects of specific companies or sectors of activity and, to a lesser extent, risks associated with the general economic situation and prospects, contributed slightly to more restrictive granting criteria," said the BdP.

Conversely, competition from other banking institutions contributed slightly to less restrictive criteria for companies.

Regarding the proportion of rejected loan applications, there were no changes in the business segment, while individuals showed a slight increase in the housing segment and no change in consumption.