The European Central Bank's (ECB) latest Bank Lending Survey (BLS) reveals a significant downturn in the demand for corporate loans in the euro area during the first quarter of 2024, contrary to expectations for stabilization. Insights from 157 banks indicated a tightening in credit standards for corporates, although standards for household mortgages eased for the first time in over two years. Despite the lower criteria for mortgage approvals, demand for credit continues to fall, exacerbated by high borrowing costs. The ECB anticipates these elevated costs will likely persist until the middle of the year. Additionally, the BLS noted a smaller ECB balance sheet is adversely affecting bank liquidity and financing conditions. For Q2, banks foresee a small net decrease in corporate loan demand but a net increase in demand for loans to households.
Demand for corporate loans in the euro area saw a “substantial decline” in the first quarter as the region continues to reel from elevated borrowing costs that probably won’t be cut until the middle of the year, the ECB says https://t.co/3qtvwgOwo5
Demand for corporate loans in the euro area saw a “substantial decline” in the first quarter as the region continues to reel from elevated borrowing costs that probably won’t be cut until the middle of the year, the ECB says https://t.co/yUmPJAA8KJ
Euro-zone firms’ demand for loans fell ‘substantially,’ ECB says https://t.co/vR1W07AmS8 via @weberalexander https://t.co/79jfScfTD8
🔴 ECB BANK LENDING SURVEY - Q1 2024 https://t.co/nK9XB2Gk8i
ECB SURVEY: CORPORATE CREDIT STANDARDS TIGHTENED IN Q1 BUT EASED FOR HOUSEHOLD MORTGAGES - BANK LENDING SURVEY
ECB SURVEY: CORPORATE LOAN DEMAND DECLINED SUBSTANTIALLY IN Q1, CONTRARY TO EXPECTATIONS FOR STABILISATION - BLS
ECB SURVEY: IN Q2, BANKS SEE TIGHTER CREDIT STANDARDS FOR CORPORATES BUT NO CHANGE FOR HOUSEHOLDS - BLS
ECB SURVEY: BANKS SEE SMALL NET DECREASE IN CORPORATE LOAN DEMAND IN Q2, NET INCREASE IN DEMAND FOR LOANS TO HOUSEHOLDS - BLS
⚠️ EURO ZONE BANKS LOWER BAR ON MORTGAGES BUT DEMAND KEEPS FALLING - ECB Full Story → https://t.co/lEODtoNTfV Euro zone banks lowered the bar on mortgage approvals last quarter for the first time in over two years but demand for credit kept falling amid high borrowing costs… https://t.co/FhRTKuLiko
🔴 ECB SURVEY: SMALLER ECB BALANCE SHEET HAS NEGATIVE EFFECT ON BANK LIQUIDITY AND FINANCING CONDITIONS - BLS.
🔴 ECB SURVEY: CORPORATE CREDIT STANDARDS TIGHTENED IN Q1 BUT EASED FOR HOUSEHOLD MORTGAGES - BLS.
🔴 ECB SURVEY: CORPORATE LOAN DEMAND DECLINED SUBSTANTIALLY IN Q1, CONTRARY TO EXPECTATIONS FOR STABILISATION - BLS.
🔴 ECB SURVEY: IN Q2, BANKS SEE TIGHTER CREDIT STANDARDS FOR CORPORATES BUT NO CHANGE FOR HOUSEHOLDS - BLS.
🔴 ECB SURVEY: BANKS SEE SMALL NET DECREASE IN CORPORATE LOAN DEMAND IN Q2, NET INCREASE IN DEMAND FOR LOANS TO HOUSEHOLDS - BLS.
We asked 157 banks about changes in their lending conditions and loan demand during the first quarter of 2024. Read our bank lending survey to find out what they said about this and more https://t.co/VvGqxX8PoQ https://t.co/XeM1yAPYIs