Trade uncertainty prompted cautious credit practices among euro area banks

The European Central Bank (ECB) said banks across the euro area tightened lending conditions in 2025 as trade tensions, particularly those linked to exports to the United States, increased risks for businesses.

The findings, published in an ECB blog post by economists Anastasia Allayioti, Alessandro Ferrari, Petra Köhler-Ulbrich and Matías Lamas Rodríguez, together with research analyst Wouter Wakker, examined corporate loan data and bank survey responses to assess how lenders reacted to...