21 July 2026

• Credit standards tightened moderately for firms amid higher perceived risks
• Business loan demand rose slightly, while household loan demand decreased
• Credit standards tightened most in sectors such as the car industry and energy-intensive manufacturing

According to the July 2026 bank lending survey (BLS), euro area banks reported a moderate net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the second quarter of 2026 (net 7% of banks; Chart 1). Banks also reported a net tightening of credit standards for both loans to households for house purchase and consumer credit and other lending to households (net 9% and 12% respectively). For firms, the net tightening was lower than banks’ expectations in the previous round (19%). Perceived risks to the economic outlook and banks’ lower risk tolerance remained the main factors contributing to the tightening, as banks remain highly…