Eurozone banks tightened credit standards for loans to firms in Q1 2023 due to high borrowing costs and stagnant economy, per ECB.

Eurozone banks tightened credit standards for loans to firms in Q1 2023 amid high borrowing costs and stagnant economy, according to the European Central Bank (ECB). While banks eased lending standards for mortgages, demand for credit has declined substantially, contrary to bank expectations of a recovery. High interest rates, lower fixed investment for firms, and reduced consumer confidence have contributed to the dampening of loan demand.

April 09, 2024
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