15 October 2024

• Credit standards remained unchanged for firms in the third quarter of 2024, after more than two years of consecutive tightening
• Credit standards eased for loans to households for house purchases but tightened for consumer credit
• Housing loan demand rebounded strongly on the back of expected interest rate cuts and improving housing market prospects
• Impact of policy rate decisions on bank net interest income turned negative for the first time since the end of 2022

According to the October 2024 bank lending survey (BLS), euro area banks reported unchanged credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the third quarter of 2024 (net percentage of banks of 0%; Chart 1). Banks also reported a further net easing of their credit standards for loans to households for house purchase (net percentage of -3%), whereas credit standards for consumer credit and other lending to households tightened further…