More businesses requested loans from banks in the first quarter of the year. Enterprises asking for money to finance their investments have been some of the most common clients at the doors of the banks.

On the other hand, in the same period, individuals showed lower interest for loans, a tendency that has been noticed since the beginning of 2022, both for consumption and for the purchase of housing. The reason behind it being the high rates of interest.

But how have banks responded to loan requests? Data collected by the Central Bank show that there are less rejected requests compared to previous months, whereas the tightening has been applied to businesses.

The increased caution of banks in lending to this segment is mainly dictated by the perceived risk to the solvency of the borrowers, as well as by uncertainties about the economic perspective, given high costs of production and supply of raw materials.

Unlike businesses, banks applied more favorable credit policies for individuals, easing both the standards and the terms and conditions of crediting.