Is Consumers’ Confidence Improving in Bank Lending?

ISLAMABAD: Banks finally reported an uptick in fresh financing to a wide range of consumers like businesses in September 2020 after continuously receiving back loans from borrowers in the past three consecutive months, signalling an improvement in confidence.

Total bank lending improved by a net 0.5%, or Rs41.20 billion, to Rs8.09 trillion in September compared to Rs8.05 trillion in the previous month, the State Bank of Pakistan (SBP) reported on Wednesday.

Earlier, borrowers returned over Rs300 billion in the past three consecutive months (June-August 2020), which was around 3.63% of the record-high outstanding loans of Rs8.36 trillion in May.