In its quarterly survey of 158 large banks, the European Central Bank (ECB) highlighted that “business demand for credit fell to its lowest level since the start of the survey in 2003“.
Additional data
A net 14% of Eurozone banks tightened their credit standards in the second quarter of 2023 from 27% in the first quarter.
Banks expect a more moderate net tightening of corporate lending in the third quarter of 2023; no change in home loans.
The cumulative net tightening since early 2022 has been considerable.
Eurozone banks further tightened conditions in the second quarter of 2023.
Business demand for credit fell to its lowest level since the start of the survey in 2003.
Banks expect a much smaller decline in business credit demand in the third quarter.
Banks’ access to financing, especially retail financing, deteriorated in the second quarter.
Source: Fx Street
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