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ECB: Eurozone Banks Tighten Credit Requirements for Companies, Housing, Consumer Loans in Q1

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Banks in the euro area tightened their credit standards for enterprises, mortgages and consumer loans in the first quarter, the European Central Bank said Tuesday.

The ECB's April bank lending survey showed that demand for loans from companies slightly decreased amid lower demand for fixed investment. On the housing loans side, demand remained unchanged in net terms on the back of weaker consumer confidence and developments in interest rates.

Meanwhile, consumer credit demand "strongly" declined, reflecting lower consumer confidence and spending on durables.

Looking ahead, banks expect credit conditions to further tighten for companies, housing loans and consumer credit in the second quarter amid geopolitical tensions, energy developments and higher funding costs.

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