Finance
Euro zone banks tightening access to business credit, ECB survey shows
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Quick Summary
Euro zone banks are tightening business credit due to economic uncertainty, with significant impacts in Germany and France, according to the ECB survey.
Euro Zone Banks Anticipate Stricter Business Credit Conditions Ahead
Impact of Economic Uncertainty on Business Credit
FRANKFURT, Feb 3 (Reuters) - Euro zone banks tightened access to corporate credit last quarter and expect to see further tightening ahead due to widespread economic uncertainty, partly related to trade policies, the European Central Bank's quarterly Bank Lending Survey showed on Tuesday.
Tightening Credit Standards
Lending growth to businesses and households has been accelerating for years but the rate of expansion still trails the pre-pandemic era, adding to evidence that the bloc's economic expansion, while resilient, remains modest.
Regional Variations in Lending
"Concerns about the outlook for firms and the broader economy, as well as banks’ lower risk tolerance, contributed to tighter credit standards," the ECB said based on a survey of 153 of the bloc's biggest banks.
Demand Trends in Mortgages and Corporate Lending
Half of the banks it surveyed said uncertainty over trade policy impacted their lending, mostly via reduced risk tolerance and weaker demand, factors that will continue to impact lending this year, the ECB said.
Corporate credit tightened most in Germany and France, among the euro zone's biggest countries, while Italy and Spain did not see any tightening.
While banks applied more restrictive credit standards for firms, they continued to ease them for mortgages, mostly in France, even if some of that could be reversed in the first quarter of the year.
Demand meanwhile held up, with banks reporting a small increase, a trend that will likely persist in the first quarter.
Banks expect a rise in loan demand for most sectors except for car manufacturing, wholesale, retail trade and commercial real estate.
Mortgage demand also increased on improved housing market prospects, even if consumer confidence contributed negatively, the ECB said.
(Reporting by Balazs Koranyi; Editing by Hugh Lawson)
Key Takeaways
- •Euro zone banks are tightening credit access due to economic uncertainty.
- •The ECB survey highlights regional variations in lending practices.
- •Corporate credit tightened most in Germany and France.
- •Mortgage demand increased despite consumer confidence issues.
- •Banks expect increased loan demand except in specific sectors.
Frequently Asked Questions about Euro zone banks tightening access to business credit, ECB survey shows
1What is business credit?
Business credit refers to the creditworthiness of a business, which allows it to borrow money or obtain goods and services on credit. It is assessed based on the company's financial history and ability to repay debts.
2What are credit standards?
Credit standards are the criteria that lenders use to evaluate the creditworthiness of borrowers. These standards help determine whether a loan will be approved and the terms of that loan.
3What is corporate lending?
Corporate lending involves banks or financial institutions providing loans to businesses. These loans can be used for various purposes, including expansion, operational costs, or capital investments.
4What is mortgage demand?
Mortgage demand refers to the desire or need for home loans among consumers. It can be influenced by factors such as interest rates, housing market conditions, and consumer confidence.
