Chileanbanks reported that financing conditions tightened in the first quarter of 2016compared to the previous quarter, while demand was weaker in most portfolios, accordingto a survey by Banco Central de Chile.
The percentageof banks that reported tighter financing conditions for mortgages during the periodremained at 39%, while the percentage for consumer loans was steady at 27%, thecentral bank said in an April 11 press release.
Lendingconditions for companies also tightened, though less than in the previous quarter.The proportion of banks reporting tighter lending conditions for loans to largecompanies fell to 12% from 41% in the previous quarter, while the proportion forloans to SMEs fell to 20% from 27%.
As fordemand, banks say it weakened in most segments. Demand for consumer loans was seenas down from the previous quarter, with the proportion of banks reporting weakerdemand rising to 40% from 33%, while the proportion that reported moderately weakerdemand for mortgages rose to 46% from 15%.
In termsof companies, demand was also seen as weaker than the previous quarter, includingin the SMEs segment where the proportion of banks reporting weaker demand rose to40% from 20%, the central bank noted.