28 January 2025

• Credit standards tightened for firms in the fourth quarter of 2024, driven by higher perceived risks and lower risk tolerance
• Credit standards remained unchanged for loans to households for house purchase but continued to tighten for consumer credit
• Housing loan demand continued to rebound strongly, while demand for firm loans remained weak

According to the January 2025 bank lending survey (BLS), euro area banks reported a renewed net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the fourth quarter of 2024 (net percentage of banks of 7%; Chart 1). Banks also reported broadly unchanged credit standards for loans to households for house purchase (net percentage of 1%), whereas credit standards for consumer credit and other lending to households tightened further (net percentage of 6%). For firms, the net tightening followed the unchanged credit standards seen in the third quarter…