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ECB Euro area bank lending survey: net 14% of EZ banks tightened credit standards in Q2 vs. 27% in Q1

Important
SourceNewsquawk
SectionECB
  • Banks expect more moderate net tightening on loans to firms in Q3.
  • The cumulated net tightening since the beginning of 2022 has been substantial.
  • Firms’ net demand for loans fell strongly in the second quarter of 2023, dropping to an all-time low since the start of the survey in 2003
  • In Q3 banks expect a further net decrease in demand for loans to firms, but much smaller than in the second quarter.
  • Banks reported that their access to funding deteriorated in most market segments in Q2 2023, especially in retail funding.

Via ECB

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