EU banks tightened loan standards in Q3 - ECB

Tuesday, 27. October 2020 10:03

The European Central Bank published on Tuesday its quarterly bank lending survey, reviewing monetary and economic developments in the Eurozone.

The ECB noted that credit standards tightened for loans provided to both businesses and households, with 19% of banks reporting they have adjusted the criteria. The additional tightening is expected to take place in the final quarter of the year, mostly due to concerns gathered around economic recovery and fiscal relief.

The release pointed out the demand for loans and credit lines fell in the third quarter, as fewer companies needed emergency liquidity. However, banks expect the demand will rebound in the last trimester of 2020. The ECB concluded by saying that it fully supports bank lending through its monetary policy measures.

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Breaking the News / ND