15 April 2025

• Credit standards for loans to firms tightened slightly further, and net loan demand moved back into slightly negative territory
• Credit standards for housing loans eased and net loan demand continued to increase strongly
• While competition in mortgage markets remains high, risk perceptions and credit quality deterioration continue to weigh on lending to firms and consumers

According to the April 2025 bank lending survey (BLS), which was conducted between 10 and 25 March 2025, euro area banks reported a small further net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the first quarter of 2025 (a net 3% of banks; Chart 1). Banks also reported a moderate easing of credit standards for loans to households for house purchase (a net ‑7% of banks), whereas credit standards for consumer credit and other lending to households tightened slightly further (a net 3% of banks). For loans to…