Banks report moderate tightening of credit standards for firms
Euro area banks tightened credit standards moderately for firms in the second quarter of 2026, with a net 7% of banks reporting the change.
The tightening was driven by perceived risks to the economic outlook and lower risk tolerance.
Banks also reported a net tightening of credit standards for household loans and consumer credit, with lower risk tolerance and higher risk perceptions being the main drivers.
For the third quarter of 2026, banks expect credit standards to tighten further across all loan categories.