ECB's Latest Findings on Eurozone Credit Standards

The European Central Bank (ECB) revealed in its recent bank lending survey that the credit standards for companies within the Eurozone remained largely unchanged during the second quarter of 2025. Despite the backdrop of geopolitical tensions and trade disputes, banks reported no further tightening of credit standards for corporate loans.

Household Loans Face Stricter Criteria

Conversely, the survey highlighted a slight net tightening in credit standards for housing loans to households, with a more significant tightening observed for consumer credit and other forms of household lending. The ECB attributed these stricter measures to shifts in risk perceptions and tolerance levels among banks.

Future Expectations for Credit Standards

Looking ahead to the third quarter of 2025, the ECB anticipates that credit standards will remain steady for firms, ease marginally for housing loans, but continue to tighten for consumer credit, signaling a cautious approach by banks in certain lending areas.