A “slight hardening”, in view of economic uncertainty. According to the survey published in all quarters of the European Central Bank, in the state of the credit market in Europe, households have had a little more difficulty in obtaining loans in this last quarter.
Banks in the euro zone tightened their criteria to grant from April to June for real estate loans, according to the ECB, which should mark a break on Thursday in its cycle of interest rates falls. The other types of loans, especially consumption, have even experienced a “more pronounced adjustment.”
This hardening is explained by “changes in the perception of risk and risk tolerance of banks,” says this study based on a questionnaire aimed at 155 banks in the euro zone.
Commercial loans remain unchanged, despite pessimistic predictions. In the second quarter, the geopolitical uncertainties and commercial tensions exacerbated by the customs duties of Donald Trump did not have “any additional specific impact” on the standards of these credits, says the ECB.
Quite increasing demand
In Germany, banks “could become more optimistic in their risk assessment” with the main government investment plans, according to Jenny Körner, KFW Research economist.
As for the application for companies in the euro zone, it has taken slightly compared to the previous quarter, but it is still negative. He was supported by the fall in interest rates, but “but hindered by global uncertainty and commercial tensions.” The application for real estate loans continues its promotion, promoted by the perspectives of the real estate market, and the demand for consumer credits also increases slightly.
On Thursday, the ECB is expected to maintain its unchanged rates after seven consecutive falls, experts believe that the euro zone reached “at the end of a monetary policy” after repeated crises, according to its president Christine Lagarde. The institution remains attentive to the threats of President Trump to impose a great surcharge on the imports of the European Union, which would have a considerable effect on the euro zone economy.
Source: BFM TV
