Banks Lending Survey
The Survey is aimed on obtaining qualitative information and defining market expectations on lending process in Armenia. It is directed to the senior loan officers of Armenian banks and credit organizations (COs).
The Survey was first conducted in the third quarter of 2008 and since then is performed regularly on quarterly basis. Questions on current situation and the expectations for the upcoming quarter are included in the questionnaire, which contains a set of core qualitative questions and some ad hoc questions that can be modified from time to time.
The loan portfolio of banks and COs participating in the survey covers 90% of the overall loan portfolio.
When making general conclusions and calculating the percentage of banks and COs that have chosen a particular version of given answers, individual responses are given the same weight regardless of their market share.
A net percentage is defined as the difference between the share of respondents reporting that credit standards have been tightened (demand decreased), and those reporting that they have eased their lending conditions (demand increased).
In order to describe the changes in lending policy and demand the diffusion indexes for loans conditions and loan demand are calculated. The particular versions of answers are given weights (0; 0.25; 0.5; 0.75 and 1) and are further aggregated into a diffusion index.