MICROPERCEPTIONS ON BANK LENDING TRENDS: A SURVEY APPROACH

Paper Number :WP56/2026
Publication Date :Jan. 1, 2026

Purpose: Trends in credit growth and lending behaviour is a key economic variable influencing decisions making of financial institutions and policy makers alike. In this context, it is largely recognised in literature that secondary data fails to give forward-looking, qualitative insights which can be crucial for policy making, leading to credit-officer surveys being presently conducted by leading central banks. We argue, given the crucial important of credit in a bank-based growing economy like India and the curious coexistence of expansionary monetary policy and muted credit growth in recent years, a better understanding of lending behaviour through the survey methodology is necessitated.

Design/methodology/approach: The paper discusses the methodology framework for the lending trends survey. The survey is proposed at pan-India level, with a two-way stratification considering region and number of branches. The questionnaire focuses more on the demand side as perceived by the loan officers, given constrained availability of data on the demand-driven credit conditions as opposed to supply side. The sampling frame is constructed from the central bank’s directory of branches, with a minimum allocation per bank, and using probability proportional to size (PPS) allocation at bank level. The pilot study is proposed to test the questionnaire, sampling procedures, field protocols, and response behaviour of loan officers, covering four metropolitan centres accounting for a substantial share of bank credit