Eurozone bank lending demand declines, credit conditions tighten
2026-10-27 17:12:03
According to CoinMeta, eurozone banks tightened lending conditions for businesses over the three months ending in September, while credit demand declined. This indicates that the European Central Bank's interest rate hikes are helping to “cool down” economic activity. The ECB released the results of a quarterly survey of 159 banks, conducted from September 21 to October 6. The survey shows that banks tightened their lending approval standards mainly due to the increased risks associated with the intensification of the US-Iran war. Some banks reported that geopolitical uncertainties and changes in the energy market are putting additional pressure on them. The proportion of loan applications rejected this quarter has risen, and the decline in loan demand mainly reflects the impact of rising borrowing costs. The ECB raised its key interest rates in June and September, by a total of 50 basis points, and it is expected that officials will keep these rates unchanged at their meeting on Thursday, but they plan to raise them again by 25 basis points in December.
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Source:Jin10 Data
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