Macroprudential Commentary – March 2025

Loans to households still growing

Both mortgage and consumer credit portfolios were expanding in early 2025. Mortgage growth primarily reflected an increase in the average amount of new loans, with the number of loan originations rising only slightly. Consumer credit growth remains stable.

Firms wary of new borrowing

Lower interest rates have yet to have an upward impact on lending to non-financial corporations, with overall corporate lending continuing to decline year-on-year. While lending to micro, small and medium-sized firms is increasing year-on-year, loans to the commercial real estate sector are still declining. Non-performing loan ratios remain low.

Housing market showing strongest recovery

Asking prices for flats have increased by more than one-tenth over the past year, while the supply of flats has not changed significantly. The new-build housing market is also experiencing stable development. Housing affordability has not improved notably and remains low, as increasing property prices outweigh the impact of falling interest rates and rising real wages.

No need to adjust the CCyB rate

The financial cycle began turning upwards in the second half of last year. However, its recovery remains gradual and uneven across sectors. This is typical of the early phase of a cycle upswing, when the risks associated with the cycle have yet to emerge to a significant extent. Banks are maintaining a strong capital position, and non-performing loan ratios remain low. At the same time, however, geopolitical tensions and trade war–related risks have increased uncertainty, posing a risk to the economy. In this context, it is appropriate to leave the CCyB rate unchanged.

Also in this edition

• How banks performed last year
• What’s new in the world of macroprudential policy

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