A change for bank customers. This hasn't happened in 15 years.

• Banks are lowering margins and easing terms on housing and consumer loans in response to growing competition.
• These actions are aimed at maintaining profits in the face of falling interest rates and lower profitability of individual loans.
• NBP data also shows that demand for loans, especially housing loans, is growing, and banks expect further growth in the coming months.

Most banks surveyed admit they are reducing margins on both home and consumer loans . In the case of consumer loans, non-interest costs are also being reduced and the maximum loan amount is being increased.

At the same time, banks point out that in the case of housing loans the only reason for these changes, and in the case of consumer loans the most important reason, is the change in competitive pressure on the market .

Banks are likely attempting to protect their profits in this context of falling interest rates . Lower rates mean lower profits on each individual loan, so to maintain overall profits, banks must compete harder to grant more loans. Hence, the sudden increase in competition.

By the way, the latest NBP data also show that the profit in the banking sector, which previously often exceeded PLN 4 billion per month in June, i.e. a month after the first interest rate cut by the NBP after the break, fell to around PLN 2.5 billion.

• In the NBP survey, banks also report an increase in demand, especially for housing loans .
• They also forecast a further increase in this demand in the coming months .
• In their opinion, demand is also expected to grow for business loans.
• Here we are also dealing with a similar story as in the case of housing loans: competition between banks is growing, so they are easing the conditions for granting loans, and this causes the demand for them to grow.