Euro area banks tighten lending standards further

Euro area banks tightened lending standards again in the second quarter of 2026, while business borrowing picked up slightly and household demand for loans weakened, according to the European Central Bank’s (ECB) latest bank lending survey.

The ECB said credit standards, which reflect banks’ internal lending guidelines and loan approval criteria, became moderately stricter for loans and credit lines to businesses, with a net 7 per cent of banks reporting tighter standards....