16 July 2024

• Credit standards were broadly unchanged at tight levels in the second quarter of 2024
• Loan demand continued to decline for firms, while recording the first increase for households since 2022
• Credit standards for firms displayed some heterogeneity across economic sectors, tightening strongly in commercial real estate

According to the July 2024 euro area bank lending survey (BLS) euro area banks reported a small further net tightening of their credit standards – i.e banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the second quarter of 2024 (net percentage of banks of 3%; Chart 1). Banks reported a moderate further net easing of their credit standards for loans to households for house purchase (net percentage of -6%), whereas credit standards for consumer credit and other lending to households tightened moderately further (net percentage of 6%). This was broadly in line with the trend over recent quarters and with…