However, looking ahead to the second quarter, expectations are shifting, according to the data gathered between February and April of this year.
A significant portion of bank loan officers, utilizing the diffusion index approach, anticipate a tightening of loan standards for both enterprises and commercial real estate loans, the central bank said in a statement released on Friday.
This projected tightening is attributed to a deterioration in the profitability and liquidity of banks' portfolios, alongside worsening borrower profiles, the report said.
Despite steady current conditions, banks are preparing for a more cautious lending environment as they navigate potential economic challenges, it added.
