The European Central Bank (ECB) has reported an increase in the stringency of lending conditions for businesses in the eurozone during the second quarter of 2026, as detailed in a recent bank lending survey. The findings indicate a moderate tightening of credit standards, leading to higher rejection rates for loan applications across the region. This shift reflects the banks' increased caution in their lending practices.
In addition to tighter credit standards, banks have also reported rising interest rates and more stringent terms for loans and credit lines. The adjustments in lending criteria have been broadly applied, impacting most sectors within the eurozone. The ECB's July survey suggests that these trends may continue, affecting businesses' access to financial resources in the coming months.
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