Latest News

Euro zone banks tighten credit by most since debt crisis, ECB says

Euro zone banks tighten credit by most since debt crisis, ECB says By Reuters

Breaking News


Economy 16 minutes ago (Jan 31, 2023 09:16)

© Reuters. FILE PHOTO: Signage is seen outside the European Central Bank (ECB) building, in Frankfurt, Germany, July 21, 2022. REUTERS/Wolfgang Rattay

FRANKFURT (Reuters) – Euro zone banks have tightened access to credit for companies by the most since the 2011 debt crisis and expect to continue doing so as they turn more pessimistic on the economy amid rising funding costs, a European Central Bank survey showed on Tuesday.

But demand for loans from enterprises and household also fell, with the drop in demand for mortgages the biggest on record on the back of higher interest rates and lower confidence, the ECB’s quarterly Bank Lending Survey showed.

The results of the BLS may play into the hands of ECB policymakers making the case for smaller rate hikes in the coming months at a policy meeting on Thursday.

A net 26 percent of banks polled by the ECB said they made their standards for approving loans to companies stricter in the last quarter of last year, the biggest tightening since 2011.

Credit standards were also tightened for consumer credit and mortgages – a trend that banks expect to continue this quarter.

Euro zone banks tighten credit by most since debt crisis, ECB says

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2023 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News