Eurozone banks unexpectedly tightened lending – ECB survey
Respondents suggest tariffs were partly to blame for reduction in available credit for businesses
Eurozone banks tightened the conditions under which they lend to business in the final quarter of 2025, the European Central Bank has said.
The ECB’s survey of 153 lenders, published today (February 3), shows that the share of rejected business loans rose to 5%, compared with 2% in Q3.
“Concerns about the outlook for firms and the broader economy, as well as banks’ lower risk tolerance, contributed to tighter credit standards,” the ECB said.
The central bank cut its policy rate from 4% to 2%
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