Information from the ECB bank credit survey:
- Business lending criteria tightened in the first quarter, but eased for household mortgages
- Demand for business loans fell significantly in the first quarter, contrary to expectations of stabilization
- In the second quarter, banks predict a tightening of credit standards for businesses but no change for households
- Banks see slight net decline in demand for business loans in Q2 and net increase in demand for household loans
- The ECB’s balance sheet reduction has a negative effect on bank liquidity and financing conditions
This article was written by Arno V Venter on www.forexlive.com.
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