Chileanbanks reported that financing conditions remained tight in the second quarter of2016 compared to the previous quarter, while demand was weaker, especially in themortgages and consumer loans portfolios, according to a survey by .

The percentageof banks that reported tighter financing conditions for consumer loans was 36%,while the percentage for mortgages was 25%, the central bank said in a July 13 pressrelease.

Lendingconditions for companies also tightened. The proportion of banks reporting tighterlending conditions for loans to large companies rose to 31% from 12% in the previousquarter, while the proportion for loans to SMEs was steady at 21%.

On thedemand side, demand for consumer loans and mortgages was seen as down from the previousquarter. The proportion of banks reporting weaker demand for consumer loans roseto 50% from 40%, while the proportion that reported the same for mortgages roseto 58% from 46%.

In termsof large companies, however, demand was seen as stronger than in the previous quarter.The proportion of banks reporting weaker demand fell to 50% from 71%, while theproportion reporting stronger demand rose to 13% from 6%.

As forSMEs, the proportion of banks reporting weaker demand rose to 43% from 40%, butthe proportion reporting stronger demand also rose to 21% from 13%, the centralbank noted.