www.ecb.europa.eu
28 April 2026
- Banks tightened credit standards across all loan categories, driven by higher perceived risks and lower risk tolerance
- Banks expect to also tighten credit standards in the second quarter, influenced by geopolitical tensions, energy developments, and higher funding costs
- Loan demand from firms and households expected to decrease, resulting from reduced financing for fixed investments, lower consumer confidence, and decreased spending on durables
- Nearly half of euro area banks use securitisation to grant new loans, manage credit risk and enhance liquidity and funding, relying on non-bank financial entities to purchase securitised loans
According to the April 2026 bank lending survey (BLS), euro area banks reported a further, larger than expected, net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the first quarter of 2026 (net 10% of banks; Chart 1). Banks reported a small net…