Geopolitical risks cause eurozone banks to tighten credit
ECB’s quarterly survey shows lenders alert to continued instability resulting from Iran war
Banks in the eurozone have tightened credit standards for business loans amid increasing geopolitical risks, the European Central Bank’s quarterly lending survey has found.
The ECB asked 159 banks about changes in their lending conditions and demand for loans during the second quarter of 2026.
As the war in the Middle East continues, the report published today (July 21) finds credit standards had tightened “moderately” for firms, even though demand for business loans had risen “slightly”.
Demand
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