www.ecb.europa.eu
20 January 2025
- Overall credit terms and conditions tightened somewhat between September and November 2024 as general market liquidity deteriorated
- Demand for funding secured against all collateral types rose
- Market-making activities increased in 2024 on account of institutions’ greater willingness to take on risk and are expected to continue increasing in 2025
Overall credit terms and conditions tightened somewhat between September and November 2024. The tightening of overall credit terms and conditions – reflected in both price and non-price terms – was in line with the expectations of such tightening expressed in the September 2024 survey. Respondents attributed the above-mentioned tightening of price and non-price terms mainly to a deterioration in general market liquidity. A small net percentage of survey respondents expected overall terms to tighten further across all counterparty types in the three months ahead (i.e. in the period from December 2024 to February 2025)…