Loans to households are mainly driven by housing market developments, and both house prices and interest rates tend to be low during downturns, which increases the attractiveness of borrowing. By contrast, the cash flows of firms usually improve in an economic upturn, which may lead them to their own funds first and only turn to external financing later.
Moreover, banks may prefer to expand lending earlier in the cycle to households than to firms because household loans are generally better collateralised. It is obvious that we cannot maintain the current degree of policy accommodation and enhanced credit support indefinitely.