finance
Euro Zone Banks Tightened Credit Standards in Second Quarter
Lending conditions for businesses and households grew stricter amid geopolitical and energy price concerns. Corporate loan demand rose while housing demand fell sharply, with banks reporting higher rejection rates and expecting further tightening in the third quarter.
Jul 21, 4:03 AM·1m read3 sources
FIFI
External shocksCredit risks
rte.ieAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Euro zone banks tightened credit standards across multiple loan categories during the second quarter, citing geopolitical tensions and energy price pressures. The tightening affected both corporate and household lending. Banks reported that a larger share of loan applications was rejected even as some categories saw increased demand.
Corporate loan demand increased in the second quarter, yet the share of rejected applications also rose. Officials noted that firms seeking funds faced stricter criteria tied to broader economic uncertainty.
Housing loan demand fell sharply during the same period.
Banks forecast an additional decline in housing loan requests during the third quarter. Further tightening of credit standards is expected across all loan categories in the third quarter, according to the survey results. >"Corporate Loan Demand Rose In Q2 But Share Of Rejected Loan Applications Increased." >"Housing Loan Demand Fell Sharply In Q2 And Further Drop Seen In Q3."
