The European Central Bank's July 2026 bank lending survey for the euro area indicates that banks tightened their credit standards for loans to firms and households during the second quarter of 2026.
According to the survey, banks reported a net tightening of credit standards for loans to enterprises, driven by increased risk perceptions and reduced risk tolerance. Demand for loans from firms weakened over the same period.
For households, credit standards for housing loans and consumer credit also tightened, while demand for these loans declined. Banks cited higher financing costs and a less favourable economic outlook as key factors.
The survey, conducted by the ECB, covers a broad sample of euro area banks and is used to inform monetary policy decisions. The full report is available on the ECB's website.
Source: European Central Bank
