The euro area banks further restricted the criteria for lending to businesses and consumption due to increased risks and interest rates, according to the ECB.
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27/10/2026
by
Lusa
Oin the third quarter, euro area banks further restricted the criteria for granting loans to companies and consumer credits due to increased risks and interest rates.
The European Central Bank (ECB) today released the survey on bank loans of October 2026, which shows that 9% of banks restricted in the third quarter the credit granting standards to companies, which are internal guidelines or loan approval criteria, against 7% in the second quarter.
In this period the banks maintained the criteria for lending to households for the purchase of housing.
In addition, 14% of banks said that they restricted the criteria for granting consumer credit and other loans to households (as opposed to 12% in the second quarter).
The ECB conducted the survey with 159 euro area banks between 21 September and 6 October 2026.
Some banks also pointed out the pressures derived from geopolitical uncertainty and the evolution of the energy sector as a reason to restrict the criteria for granting credits.
The credit criteria for companies were restricted by 27% of banks in France and 6% of banks in Germany, while 11% of banks in Italy relaxed them.
In Germany, 4% of the banks relaxed the lending criteria for housing while they were maintained in Spain, France and Italy.
In addition, banks in Germany maintained the criteria for granting consumer credit, while 38% of banks in France, 27% in Italy and 8% in Spain restricted them.
The ECB asked a specific question about new loans to finance the implementation or development of artificial intelligence (IA).
Most banks have not yet incorporated specific criteria for assessing AI-related loans.
A small number of banks have said that they are increasingly taking into account AI and associated risks and that they are subject to more stringent scrutiny by technology companies.
In the fourth quarter, banks predicted to further restrict the criteria for granting credit to companies, loans for housing and consumption to the highest levels since the third quarter of 2023.
In addition, banks rejected more loan applications in all groups, but mainly in consumer credit.
In the third quarter, the demand for credit from companies and households fell, both to buy a house and for consumption, due to increased interest rates.
Similarly, companies invest less in fixed assets and use alternative funding sources.
Geopolitical and energy uncertainty also stops the demand for corporate loans.
Several banks have said that they predict a gradual but sustained increase in demand for credit to finance digital infrastructure, in particular data centres.
The banks pointed out that their AI-linked loans would more likely target infrastructure providers than software developments or companies that adopt that technology, the ECB added.