The degree of net tightening in credit standards for loans to enterprises in Eurozone is likely to remain unchanged in the third quarter, the European Central Bank said in its quarterly Bank Lending Survey published Wednesday.
Tightening of banks' credit standards was broadly stable at the euro area level in the second quarter compared with the first quarter, both for loans to enterprises and households.
Credit terms tightening is expected to decline for housing loans and consumer credit in the third quarter.
At the same time, euro area banks continued to report a significant fall in the demand for loans to enterprises in the second quarter, although the balance was somewhat less negative than in the first quarter.
The fall was mainly driven by a substantial negative impact from fixed investment on the financing needs of firms, ECB said.
Meanwhile, the decline in net demand for loans to households for house purchase eased in the second quarter compared with the first quarter.
Banks expect a continued decline in the net demand for loans, both for enterprises and households in the third quarter, even if less negative than in the second quarter.
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