09 May 2008

ECB April 2008 bank lending survey

The ECB published its report on the results of the April 2008 bank lending survey for the euro area. The survey also included a set of ad-hoc questions to gauge the extent to which the financial market tensions have affected banks’ credit standards for loans and credit lines to enterprises and loans to households.

The ECB published its report on the results of the April 2008 bank lending survey for the euro area. The survey also included a set of ad-hoc questions which aim to gauge the extent to which the financial market tensions experienced since the second half of 2007 have affected banks’ credit standards for loans and credit lines to enterprises and loans to households in the euro area.

 

The results indicate a further increase in the net tightening of credit standards for loans to enterprises, with net tightening increasing more for large than for small and medium-sized enterprises. Banks’ risk perception regarding general economic activity, the industry or firm-specific outlook, and the cost of banks’ funds and balance sheet constraints contributed to the further increase observed in banks’ net tightening of credit standards. Banks also reported a further increase in the net tightening of credit standards for loans to households for house purchase. In addition, the net tightening of credit standards for consumer credit and other lending to households rose.

 

With regard to demand for loans, banks reported that net demand for loans to enterprises was negative in the first quarter of 2008, a decline by comparison with the slightly positive net demand observed in the previous quarter. Net demand for loans to households for house purchase also fell further in the first quarter of 2008 and was negative, while net demand for consumer credit and other lending to households was broadly unchanged over the same period.

 

Press release

Survey

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