28 October 2025

• Small, unexpected net tightening of credit standards for loans to firms
• Credit standards unchanged for housing loans and moderately tighter for consumer credit
• Demand for loans to firms increased slightly, but still weak overall
• Housing loan demand continued to increase strongly

According to the October 2025 bank lending survey (BLS), euro area banks reported a small net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the third quarter of 2025 (net percentage of banks of 4%; Chart 1). Banks reported unchanged credit standards for loans to households for house purchase (net percentage of 0%) and a moderate net tightening for consumer credit and other lending to households (net percentage of 5%). For firms, the net tightening in the third quarter followed broadly unchanged credit standards in the second quarter. This was unexpected as, in the previous survey round, banks had…