Net 42% of euro area firms reported higher bank loan interest rates, up from 26% in the prior quarter, the SAFE survey showed.
Euro area firms experienced a marked tightening in bank lending conditions during the second quarter of 2026, with a net 42% reporting higher interest rates on loans, up from 26% in Q1. The increase was consistent across small, medium, and large enterprises, signaling broad-based pressure on borrowing costs.
Other financing costs, including fees and collateral requirements, also rose, though at a slower pace than the previous quarter. A net 31% of firms noted higher charges, down from 37%, while collateral demands eased slightly to 10% from 14%. Financing needs edged up modestly, but loan availability remained largely unchanged.
Firms anticipated slower increases in selling prices, non-labor input costs, and wages, while inflation expectations held steady across one-, three-, and five-year horizons.