Polish banks expect to tighten credit criteria in almost all market segments in Q1, the central bank NBP said in a quarterly report on results of a survey of top lending officers at Polish banks.

Credit criteria are expected to be tightened for SMEs and for long-term loans for large companies. Demand is expected to fall in all corporate loan categories, particularly so for long-term loans for SMEs.

Credit criteria for housing loans are expected to be slightly tightened in Q1, after having been tightened in Q4. Demand is expected to fall in Q1 after mixed readings in Q4.

For consumer loans, banks plan to slightly loosen credit criteria in Q1 after a tightening in Q4. Demand for loans is expected to continue to fall.

NBP conducted its survey at the turn of December 2012 and January 2013 among 29 banks, which accounted for 81% of the banking sector's loan portfolio.