The euro area
bank lending survey
Fourth quarter of 2022
January 2023
The euro area bank lending survey – Fourth quarter of 2022
1
Contents
Introduction 2
1 Overview of results 3
Box 1 General notes 7
2 Developments in credit standards, terms and conditions, and net
demand for loans in the euro area 10
2.1 Loans to enterprises 10
2.2 Loans to households for house purchase 18
2.3 Consumer credit and other lending to households 23
3 Ad hoc questions 28
3.1 Banks’ access to retail and wholesale funding 28
3.2 Banks’ adjustment to regulatory and supervisory action 29
3.3 The impact of banks’ NPL ratios on their lending policies 32
3.4 Bank lending conditions and loan demand across main sectors
of economic activity 33
Annexes 36
The euro area bank lending survey – Fourth quarter of 2022
2
Introduction
The results reported in the January 2023 bank lending survey (BLS) relate to
changes observed during the fourth quarter of 2022 and expectations for the first
quarter of 2023. The survey was conducted between 12 December 2022 and 10
January 2023. A total of 151 banks were surveyed in this round, with a response rate
of 99%. In addition to results for the euro area as a whole, this report also contains
results for the four largest euro area countries.
1
A number of ad hoc questions were included in the January 2023 survey. They
address the impact of the situation in financial markets on banks’ access to retail and
wholesale funding, the impact of regulatory and supervisory requirements on banks’
lending policies, the impact of banks’ non-performing loan (NPL) ratios on their
lending policies and the change in bank lending conditions and loan demand across
the main economic sectors.
1
The four largest euro area countries in terms of GDP are Germany, France, Italy and Spain. From the
April 2022 BLS onwards, banks are asked about additional factors having an impact on the terms and
conditions for loans to firms and on credit standards for loans to households, as well as about the
developments – across firm sizes – in the factors having an impact on loan demand and the share of
rejected loan applications. In addition, since the January 2022 BLS onwards, the aggregation of banks’
replies to the euro area results has been based on unweighted national results for all countries.
The euro area bank lending survey – Fourth quarter of 2022
3
1 Overview of results
In the January 2023 BLS, euro area banks reported a substantial further tightening of
credit standards for loans or credit lines to enterprises in the fourth quarter of 2022,
i.e. the percentage of banks reporting a tightening of credit standards was
substantially larger than the percentage of banks reporting an easing. Risks related
to the economic outlook, industry or firm-specific situation and banks’ risk tolerance
continued to have a tightening impact on credit standards. Banks’ cost of funds and
balance sheet situation also continued to have a tightening impact on credit
standards for loans to firms, which was somewhat smaller for costs related to capital
and market financing and slightly larger for the liquidity position of banks than in the
previous quarter. In the first quarter of 2023, euro area banks expect a net tightening
of a similar magnitude to the current quarter.
Firms’ net demand for loans declined, corresponding to the recently observed
moderation in loan flows to non-financial corporations. The decline in net demand
was stronger than expected by banks in the previous quarter. Banks indicated a
significantly negative contribution of the rising general level of interest rates to loan
demand. In addition, fixed investment had a stronger dampening impact while
inventories and working capital needs had a smaller positive impact on loan demand,
compared with the previous quarter. In the first quarter of 2023, banks expect a
further net decline in demand for loans to firms.
Banks reported a strong net tightening of credit standards for housing loans and for
consumer credit. The primary driver was higher risk perceptions and there was also
a tightening contribution from the cost of funds and balance sheet constraints, and
decreasing risk tolerance, alongside a slight tightening impact from competition for
housing loans. The decrease in loan demand by households for house purchase was
the strongest recorded since the beginning of the survey in 2003. Demand also
decreased at a lesser but still strong pace in net terms for consumer credit. The
general level of interest rates, lower consumer confidence and housing market
prospects all contributed negatively to demand for loans for house purchase. The
general level of interest rates and lower consumer confidence also contributed to a
net decrease in consumer credit demand alongside an increasingly negative
contribution from lower demand for durables. In the first quarter of 2023, banks
expect another net tightening of credit standards for all lending to households and a
strong net decrease in housing loan and consumer credit.
In more detail, euro area banks reported a substantial further tightening of their credit
standards (i.e. banks’ internal guidelines or loan approval criteria) for loans or credit
lines to enterprises in the fourth quarter of 2022 (net percentage of banks of 26%,
after 19% in Q3 2022; see Overview table). The net tightening of credit standards
was broadly in line with banks’ expectations from the previous quarter. Looking at
developments from a historical perspective, the net tightening of credit standards
was the largest reported since the euro area sovereign debt crisis (net percentage of
35% reached in Q4 2011). Risks related to the economic outlook, industry or firm-
The euro area bank lending survey – Fourth quarter of 2022
4
specific situation and banks’ declining risk tolerance continued to have a tightening
impact on credit standards of similar magnitudes to the previous quarter. Banks’ cost
of funds and balance sheet situation also continued to have a tightening impact on
credit standards for loans to euro area firms. The tightening contribution in this
quarter compared with the previous one was somewhat smaller for costs related to
capital and market financing and slightly larger for the liquidity position of banks,
which corresponds to the substantial early repayments of central bank liquidity made
in the fourth quarter, following the recalibration of the conditions of the third series of
targeted longer-term refinancing operations (TLTRO III). In the first quarter of 2023,
euro area banks expect a net tightening of similar magnitudes to the current quarter
(24%).
Euro area banks reported a strong net tightening of credit standards for housing
loans (net percentage of banks of 21%, after 32% in Q3 2022; see Overview table),
and a substantial but less pronounced net tightening for consumer credit and other
lending to households (17%, after 21%). In both cases the tightening was smaller
than anticipated in the previous quarter (net percentage of 32% and 20%
respectively). The net tightening for housing loans was driven mainly by higher risk
perceptions. Banks’ cost of funds and balance sheet constraints as well as lower risk
tolerance had a moderate tightening impact, while competition had a slight tightening
impact. For consumer credit, increased risk perceptions mainly contributed to the net
tightening, while decreased risk tolerance and the overall cost of funds and balance
sheet constraints had a slight tightening impact. Banks expect credit standards to
tighten for both housing loans (16%) and for consumer credit (15%) in the first
quarter of 2023.
Banks’ overall terms and conditions (i.e. actual terms and conditions agreed in the
loan contract) for new loans to enterprises tightened substantially (net percentage of
39%, after 19%). The widening of margins on both average (net percentage of 21%)
and riskier loans (net percentage of 20%) had a significant tightening effect, while
collateral requirements and other terms and conditions had a more moderate
contribution. Banks also reported a net tightening of overall terms and conditions for
both housing loans (net percentage of 29%, after 24%), and consumer credit and
other lending to households (20%, after 22%). In contrast to the previous quarter,
when loan margins narrowed on both loans for house purchase and consumer credit
(despite the net tightening of terms and conditions), loan margins widened across
both categories of lending, pointing in part to a more pronounced pass-through of
policy rate increases.
Banks reported a net increase in the share of rejected applications for loans to firms
(net percentage of 12%, after 8%). For housing loans, banks reported a lower but
still strong net increase in the share of rejected applications compared with the
previous quarter (25%, after 31%). The share of rejected applications also increased
in net terms for consumer credit (20%, after 13%).
Credit standards for loans to enterprises tightened in net terms in all four largest euro
area countries in the fourth quarter of 2022 (see Overview table). Credit standards
for housing loans also tightened across all four largest euro area countries, while
The euro area bank lending survey – Fourth quarter of 2022
5
credit standards for consumer credit and other lending to households were
unchanged in Italy and tightened in Germany, Spain and France.
Firms’ net demand for loans decreased in the fourth quarter of 2022 (net percentage
of -11%, after 13% in Q3 2022; see Overview table). This is the first decline in net
demand since the beginning of 2021 and is more pronounced in comparison with
banks’ expectations from the previous quarter. The reported net decline is consistent
with the lower realised loan flows to non-financial corporations observed in the latest
available data for the fourth quarter of 2022. Banks indicated a significant negative
contribution of the rising general level of interest rates to loan demand (net
percentage of -26%). In addition, fixed investment had a further strong dampening
impact on loan demand (net percentage of -25%). While sentiment indicators such
as the Purchasing Managers’ Index (PMI) showed some improvement in business
activity for December, a slowdown in investment is still expected in the coming
months. As firms continue to face elevated energy and production costs, banks also
reported a positive impact of inventories and working capital needs (net percentage
of 16%) on demand for loan to firms, although its contribution was smaller than in the
previous two quarters, which likely reflects the gradual easing of supply bottlenecks.
Loan demand decreased in net terms for small and medium-sized enterprises
(SMEs) and large firms, and for long-term loans, while it remained broadly
unchanged for short-term loans. In the first quarter of 2023, banks expect a further
net decline in demand for loans to firms (net percentage of -15%), due to a
significant decrease in demand for long-term loans, while the demand for short-term
loans is expected to increase to a small extent.
Net demand by households for housing loans decreased at its largest rate on record
(net percentage of -74%, after -42% in Q3 2022; see Overview table). Demand for
consumer credit also decreased strongly, albeit to a lesser extent than for housing
loans in net terms (net percentage of -29%, after -11%, see Overview table). The net
decrease in housing loan demand was mainly driven by the general level of interest
rates (net percentage of -77%), consumer confidence (-54%) and housing market
prospects (-50%). This highlights a strong negative impact of recent interest rate
increases on housing loan demand, coupled with declining consumer confidence.
The net decrease in demand for consumer credit was also mainly driven by the
general level of interest rates (net percentage of -37%) and lower consumer
confidence (-34%), while consumption of durables had a more pronounced negative
contribution compared with the previous quarter (-26% after -6%). For the first
quarter of 2023, banks expect net declines in the demand for housing loans (-49%)
and for consumer credit (-20%).
Banks reported on balance a net decrease in demand for loans to enterprises in
Germany, while loan demand increased in Spain and France and was unchanged in
Italy in the fourth quarter of 2022. Net demand for both housing loans and consumer
credit decreased in all four largest euro area countries. In particular, banks in
Germany and France reported a very large net decrease in demand for loans for
house purchase (-93% and -90% respectively).
The euro area bank lending survey – Fourth quarter of 2022
6
Overview table
Latest BLS results for the largest euro area countries
(net percentages of banks reporting a tightening of credit standards or an increase in loan demand)
Country
Enterprises House purchase Consumer credit
Credit
standards Demand
Credit
standards Demand
Credit
standards Demand
Q3
22
Q4
22 Avg.
Q3
22
Q4
22 Avg.
Q3
22
Q4
22 Avg.
Q3
22
Q4
22 Avg.
Q3
22
Q4
22 Avg.
Q3
22
Q4
22 Avg.
Euro area 19 26 8 13 -11 1 32 21 6 -42 -74 3 21 17 4 -11 -29 0
Germany 19 19 4 3 -32 7 39 29 3 -71 -93 8 37 25 0 -23 -46 8
Spain 25 33 9 -8 8 -5 40 20 14 -30 -20 -8 33 33 9 -8 -17 -7
France 8 42 5 50 8 -3 42 10 3 -17 -90 6 0 14 -2 7 -36 -1
Italy 36 27 11 9 0 7 9 18 1 -18 -45 12 8 0 4 -31 -31 11
Notes: “Avg.” refers to historical averages, which are calculated over the period since the beginning of the survey, excluding the most
recent round. Owing to the different sample sizes across countries, which broadly reflect the differences in the national shares in
lending to the euro area non-financial private sector, the size and volatility of the net percentages cannot be directly compared across
countries.
The January 2023 BLS also contained a number of ad hoc questions. Euro area
banks reported that their access to retail funding and securitisation deteriorated
moderately in the fourth quarter of 2022, while access to debt securities and money
markets improved to a small extent. In the first quarter of 2023, banks expect a
deterioration in access to all funding sources.
Euro area banks reported a strengthening of their capital position in 2022 in
response to new regulatory or supervisory requirements, although to a smaller extent
than in 2021. At the euro area level, supervisory or regulatory action had a net
tightening impact on banks’ credit standards across all loan categories in 2022, to a
larger extent than previously reported. Looking ahead to 2023, euro area banks
expect that regulatory or supervisory action will support their capital positions and
will lead to a further tightening impact for credit standards and credit margins across
all loan categories.
In the second half of 2022, euro area banks’ NPL ratios had a broadly neutral impact
on credit standards for loans to enterprises and households. They had a slight
tightening impact on terms and conditions for loans to enterprises, and a broadly
neutral impact on terms and conditions for loans to households. Over the next six
months, euro area banks expect NPL ratios to have a tightening impact on credit
standards and terms and conditions for loans to enterprises, housing loans and
consumer credit, albeit to varying degrees of magnitude. Pressure related to
supervisory or regulatory requirements, access to market financing and banks’
liquidity positions contributed towards an easing impact of NPL ratios on lending
conditions in the second half of 2022, although costs of capital and lower risk
tolerance had a tightening impact through NPL ratios.
Euro area banks indicated a more pronounced net tightening of credit standards for
new loans to enterprises across all the main economic sectors in the second half of
2022. These developments are in line with the substantial net tightening of credit
standards for loans to firms in the third and fourth quarters of 2022. Over the next six
months, euro area banks expect a net tightening of credit standards across all main
The euro area bank lending survey – Fourth quarter of 2022
7
sectors of economic activity. Banks reported a net decrease in the demand for loans
or credit lines across all main economic sectors, while in energy-intensive
manufacturing there was a small increase in demand. Over the next six months, euro
area banks expect a more pronounced decline in net demand in the real estate and
construction sectors, while the decline is expected to be more moderate in
manufacturing, services and retail and wholesale trade.
Box 1
General notes
The bank lending survey (BLS) is addressed to senior loan officers at a representative sample of
euro area banks. In the current round, 151 banks were surveyed, representing all euro area
countries and reflecting the characteristics of their respective national banking structures. The main
purpose of the BLS is to enhance the Eurosystem’s knowledge of bank lending conditions in the
euro area.
2
BLS questionnaire
The BLS questionnaire contains 22 standard questions on past and expected future developments:
18 backward-looking questions and four forward-looking questions. In addition, it contains one
open-ended question. Those questions focus on developments in loans to euro area residents
(i.e. domestic and euro area cross-border loans) and distinguish between three loan categories:
loans or credit lines to enterprises; loans to households for house purchase; and consumer credit
and other lending to households. For all three categories, questions are asked about the credit
standards applied to the approval of loans, the terms and conditions of new loans, loan demand,
the factors affecting loan supply and demand conditions, and the percentage of loan applications
that are rejected. Survey questions are generally phrased in terms of changes over the past three
months or expected changes over the next three months. Survey participants are asked to indicate
in a qualitative way the strength of any tightening or easing or the strength of any decrease or
increase, reporting changes using the following five-point scale: (1) tightened/decreased
considerably, (2) tightened/decreased somewhat, (3) basically no change, (4) eased/increased
somewhat, or (5) eased/increased considerably.
In addition to the standard questions, the BLS questionnaire may contain ad hoc questions on
specific topics of interest. Whereas the standard questions cover a three-month time period, the ad
hoc questions tend to refer to changes over a longer time period (e.g. over the past and next six
months).
Aggregation of banks’ replies to national and euro area BLS results
The responses of the individual banks participating in the BLS are aggregated in two steps to form
the euro area results. In the first step, the responses of individual banks are aggregated to national
results for the euro area countries. In the second step, the national BLS results are aggregated to
euro area BLS results.
2
For more detailed information on the bank lending survey, see the article entitled “A bank lending
survey for the euro area”, Monthly Bulletin, ECB, April 2003; Köhler-Ulbrich, P. , Hempell, H. and
Scopel, S., “The euro area bank lending survey”, Occasional Paper Series, No 179, ECB, 2016; and
Burlon, L., Dimou, M., Drahonsky, A. and Köhler-Ulbrich, P., “What does the bank lending survey tell us
about credit conditions for euro area firms?”, Economic Bulletin, Issue 8, ECB, December 2019.
The euro area bank lending survey – Fourth quarter of 2022
8
In the first step, banks’ replies are aggregated to national BLS results for all countries by applying
equal weights to all banks in the sample.
3
For two countries (Malta and Slovakia), national results
are additionally aggregated by applying a weighting scheme based on the amounts outstanding of
loans to non-financial corporations and households of the individual banks in the respective national
samples.
In the second step, since the numbers of banks in the national samples differ considerably and do
not always reflect those countries’ respective shares in lending to euro area non-financial
corporations and households, the unweighted national survey results of all countries are
aggregated to euro area BLS results by applying a weighting scheme based on the national shares
of outstanding loans to euro area non-financial corporations and households.
BLS indicators
Responses to questions relating to credit standards are analysed in this report by looking at the
difference (the “net percentage”) between the percentage of banks reporting that credit standards
applied in the approval of loans have been tightened and the percentage of banks reporting that
they have been eased. For all questions, the net percentage is determined on the basis of all
participating banks that have business in or exposure to the respective loan categories (i.e. they are
all included in the denominator when calculating the net percentage). This means that banks that
specialise in certain loan categories (e.g. banks that only grant loans to enterprises) are only
included in the aggregation for those categories. All other participating banks are included in the
aggregation of all questions, even if a bank replies that a question is “not applicable” (“NA”). This
harmonised aggregation method was introduced by the Eurosystem in the April 2018 BLS. It has
been applied to all euro area and national BLS results in the current BLS questionnaire, including
backdata.
4
The resulting revisions for the standard BLS questions have generally been small, but
revisions for some ad hoc questions have been larger owing to a higher number of “not applicable”
replies by banks.
A positive net percentage indicates that a larger proportion of banks have tightened credit standards
(“net tightening”), whereas a negative net percentage indicates that a larger proportion of banks
have eased credit standards (“net easing”).
Likewise, the term “net demand” refers to the difference between the percentage of banks reporting
an increase in loan demand (i.e. an increase in bank loan financing needs) and the percentage of
banks reporting a decline. Net demand will therefore be positive if a larger proportion of banks have
reported an increase in loan demand, whereas negative net demand indicates that a larger
proportion of banks have reported a decline in loan demand.
In the assessment of survey balances for the euro area, net percentages between -1 and +1 are
generally referred to as “broadly unchanged”. For country results, net percentage changes are
reported in a factual manner, as differing sample sizes across countries mean that the answers of
individual banks have differing impacts on the magnitude of net percentage changes.
3
To ensure a good representation of national bank lending markets, the selected sample banks are
generally of a similar size or have lending behaviour that is typical of a larger group of banks.
4
The non-harmonised historical data differ from the harmonised data mainly as a result of
heterogeneous treatment of “NA” (Not Applicable) replies and specialised banks across questions and
countries. Non-harmonised historical BLS data are published for discontinued BLS questions and ad
hoc questions.
The euro area bank lending survey – Fourth quarter of 2022
9
In addition to the “net percentage” indicator, the ECB also publishes an alternative measure of
banks’ responses to questions relating to changes in credit standards and net demand. This
measure is the weighted difference (“diffusion index”) between the percentage of banks reporting
that credit standards have been tightened and the percentage of banks reporting that they have
been eased. Likewise, as regards demand for loans, the diffusion index refers to the weighted
difference between the percentage of banks reporting an increase in loan demand and the
percentage of banks reporting a decline. The diffusion index is constructed in the following way:
lenders who have answered “considerably” are given a weight (score of 1) which is twice as large
as that given to lenders who have answered “somewhat” (score of 0.5). The interpretation of the
diffusion indices follows the same logic as the interpretation of net percentages.
Detailed tables and charts based on the responses provided can be found in Annex 1 for the
standard questions and Annex 2 for the ad hoc questions. In addition, BLS time series data are
available on the ECB’s website via the Statistical Data Warehouse.
A copy of the questionnaire, a glossary of BLS terms and a BLS user guide with information on the
BLS series keys can all be found on the ECB's website.
The euro area bank lending survey – Fourth quarter of 2022
10
2 Developments in credit standards,
terms and conditions, and net demand
for loans in the euro area
2.1 Loans to enterprises
2.1.1 Credit standards for loans to enterprises tightened substantially
Euro area banks reported a substantial further tightening of credit standards for
loans or credit lines to enterprises in the fourth quarter of 2022, i.e. the percentage of
banks reporting a tightening of credit standards was substantially larger than the
percentage of banks reporting an easing (net percentage of banks of 26%, after 19%
in the third quarter of 2022; see Chart 1 and Overview table). The net tightening of
credit standards was broadly in line with banks’ expectations from the previous
quarter. Looking at developments from a historical perspective, the net tightening of
credit standards was the largest reported since the euro area sovereign debt crisis
(net percentage of 35% reached in Q4 2011). Credit standards tightened to the same
extent for loans to SMEs (21%, after 19%) and for loans to large firms (21%, after
17%; see Chart 2). At the same time, the tightening was stronger for long-term loans
(26%, after 20%) than for short-term loans (18%, after 15%).
Risks related to the economic outlook, industry or firm-specific situation and banks’
declining risk tolerance continued to have the largest tightening impact on credit
standards (see Chart 1 and Table 1). In addition, risks related to the collateral
demanded had a small tightening impact on credit standards for loans to enterprises.
Banks’ cost of funds and balance sheet conditions also had a tightening impact on
credit standards for loans to euro area firms. Compared with the previous quarter,
this was somewhat smaller for costs related to capital and market financing and
slightly larger for the liquidity position of banks, which corresponds to substantial
repayments of central bank liquidity in the fourth quarter, following the recalibration of
the conditions of the third series of targeted longer-term refinancing operations
(TLTRO III). Banks’ cost of funds and balance sheet constraints had a tightening
impact for loans to both SMEs and large firms.
The euro area bank lending survey – Fourth quarter of 2022
11
Chart 1
Changes in credit standards applied to the approval of loans or credit lines to
enterprises, and contributing factors
(net percentages of banks reporting a tightening of credit standards and contributing factors)
Notes: “Actual” values are changes that have occurred, while “expected” values are changes anticipated by banks. Net percentages
are defined as the difference between the sum of the percentages of banks responding “tightened considerably” and “tightened
somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased considerably”. The net percentages
for responses to questions related to contributing factors are defined as the difference between the percentage of banks reporting that
the given factor contributed to a tightening and the percentage reporting that it contributed to an easing. “Cost of funds and balance
sheet constraints” is the unweighted average of “banks’ capital and the costs related to banks’ capital position”, “access to market
financing” and “liquidity position”; “risk perceptions” is the unweighted average of “general economic situation and outlook”, “industry or
firm-specific situation and outlook/borrower’s creditworthiness” and “risk related to the collateral demanded”; “competition” is the
unweighted average of “competition from other banks”, “competition from non-banks” and “competition from market financing”. The net
percentages for “other factors” refer to further factors which were mentioned by banks as having contributed to changes in credit
standards.
Chart 2
Changes in credit standards applied to the approval of loans or credit lines to SMEs
and large enterprises, and contributing factors
(net percentages of banks reporting a tightening of credit standards and contributing factors)
Note: See the notes to Chart 1.
Credit standards for loans to enterprises tightened across all four largest euro area
countries, driven mainly by banks’ higher perceived risks. In addition, banks in
Germany, Spain and Italy reported a tightening impact of their risk tolerance on credit
-10
-5
0
5
10
15
20
25
30
35
40
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Credit standards - actual
Credit standards - expected
-10
0
10
20
30
40
50
60
70
80
90
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain France Italy
Banks' risk tolerance
Risk perceptions
Competition
Cost of funds and balance sheet constraints
Other factors
-10
0
10
20
30
40
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Credit standards - actual
Credit standards - expected
-10
0
10
20
30
40
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Banks' risk tolerance
Risk perceptions
Competition
Cost of funds and balance sheet constraints
Other factors
Loans to large enterprises
Loans to SMEs
The euro area bank lending survey – Fourth quarter of 2022
12
standards for loans to firms. Costs of funds and balance sheet conditions had a
tightening impact across all four largest euro area countries, driven by banks’ capital
position in Germany and Italy, the ability to access market financing in Spain and
banks’ liquidity position in France.
In the first quarter of 2023, euro area banks expect a net tightening of credit
standards for loans to firms of a similar magnitude to the current quarter (24%).
Banks expect a net tightening both for loans to SMEs (net percentage of 24%) and
large enterprises (net percentage of 20%).
Table 1
Factors contributing to changes in credit standards for loans or credit lines to
enterprises
(net percentages of banks)
Country
Cost of funds and
balance sheet
constraints
Pressure from
competition Perception of risk Banks’ risk tolerance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 6 5 1 0 20 17 12 9
Germany 4 5 0 0 13 12 13 3
Spain 6 3 0 0 17 22 8 17
France 3 8 3 0 14 8 8 0
Italy 15 3 3 0 36 27 27 27
Note: See the notes to Chart 1.
2.1.2 Terms and conditions on loans to enterprises tightened
substantially
Banks’ overall terms and conditions (i.e. the actual terms and conditions agreed in
the loan contract) for new loans to enterprises tightened substantially in the fourth
quarter of 2022 (net percentage of 39%, after 19%; see Chart 3 and Table 2). Tighter
terms and conditions are confirmed by the steep rise in aggregate cost of borrowing
for firms for the latest available data for the fourth quarter of 2022. The tightening in
terms and conditions was mainly due to a widening of margins (defined as the
spread over relevant market reference rates) on both average (net percentage of
21%) and riskier (net percentage of 20%) loans, which was much more pronounced
than in the previous quarter. Collateral requirements (net percentage of 8%) and
other terms and conditions also had a tightening impact on firms’ overall terms and
conditions. Banks reported a strong net tightening of overall terms and conditions
both for loans to SMEs and large firms, owing mostly to the widening of margins on
average and riskier loans (see Chart 4). Collateral requirements and other terms and
conditions also had a tightening impact on overall terms and conditions across both
loan categories.
The euro area bank lending survey – Fourth quarter of 2022
13
Chart 3
Changes in terms and conditions on loans or credit lines to enterprises
(net percentages of banks reporting a tightening of terms and conditions)
Notes: “Margins” are defined as the spread over relevant market reference rates. “Other terms and conditions” is the unweighted
average of “non-interest rate charges”, “size of the loan or credit line”, “loan covenants” and “maturity”. The net percentages for “other
factors” refer to further factors which were mentioned by banks as having contributed to changes in terms and conditions.
Chart 4
Changes in terms and conditions on loans or credit lines to SMEs and large
enterprises
(net percentages of banks reporting a tightening of terms and conditions)
Note: See the notes to Chart 3.
Banks’ higher risk perceptions, decreased risk tolerance and increased funding costs
and balance sheet constraints were the main drivers of the net tightening in overall
terms and conditions for loans to firms in the fourth quarter of 2022 (see Table 3).
Risk perceptions related to the economic outlook and the creditworthiness of firms
had a large tightening impact on terms and conditions, whereas the impact of the
collateral demanded was more moderate. Banks indicated a further tightening effect
of cost of funds and balance sheet constraints related to access to market financing,
their capital costs and their liquidity positions. Competition had a small tightening
-20
-10
0
10
20
30
40
50
60
70
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Overall terms and conditions
-60
-40
-20
0
20
40
60
80
100
120
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain
France
Italy
Margins on average loans
Margins on riskier loans
Collateral requirements
Other terms and conditions
Other factors
-20
-10
0
10
20
30
40
50
60
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Overall terms and conditions
-20
-10
0
10
20
30
40
50
60
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Margins on average loans
Margins on riskier loans
Collateral requirements
Other terms and conditions
Other factors
Loans to large enterprises
Loans to SMEs
The euro area bank lending survey – Fourth quarter of 2022
14
impact on overall terms and conditions, related to competition from market financing
and competition from non-banks.
Table 2
Changes in terms and conditions on loans or credit lines to enterprises
(net percentages of banks)
Country
Overall terms and conditions Banks’ margins on average loans Banks’ margins on riskier loans
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 19 39 6 21 4 20
Germany 29 26 29 29 19 19
Spain 50 67 -8 42 0 33
France -17 50 -25 0 -25 8
Italy 55 55 9 36 9 36
Note: See the notes to Chart 3.
Table 3
Factors contributing to changes in overall terms and conditions on loans or credit
lines to enterprises
(net percentages of banks)
Country
Cost of funds and
balance sheet
constraints
Pressure from
competition Perception of risk Banks’ risk tolerance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 11 13 -2 3 22 21 12 8
Germany 8 10 0 1 22 22 16 3
Spain 14 11 -6 -3 19 39 8 17
France 6 28 -6 11 11 6 8 0
Italy 24 15 0 3 39 27 18 18
Notes: The net percentages for these questions relating to contributing factors are defined as the difference between the percentage of
banks reporting that the given factor contributed to a tightening and the percentage reporting that it contributed to an easing. See the
notes to Chart 1.
In all four largest euro area countries, overall terms and conditions tightened on
loans or credit lines to enterprises. Costs of funds and risk perceptions had a
tightening impact on overall terms and conditions across all four largest economies.
At the same time, banks’ risk tolerance had a tightening impact in Germany, Spain
and Italy and a neutral impact in France. Competition related to market financing and
non-banks had a tightening impact on overall terms and conditions in France and
Italy. Banks in France indicated a widening of margins on average loans while
margins were unchanged for riskier loans. Margins widened for both average and
riskier loans in Germany, Spain and Italy.
2.1.3 Rejection rate for loans to enterprises increased
Euro area banks reported a net increase in the share of rejected applications for
loans to firms (net percentage of 12%, after 8% in the previous quarter). This
development is consistent with a further tightening of credit standards, which makes
The euro area bank lending survey – Fourth quarter of 2022
15
banks more likely to reject loan applications. The net increase in the share of
rejected loan applications was similar for loans to SMEs (net percentage of 11%,
after 8%) and for loans to large firms (net percentage of 10%, after 9%).
Across the largest euro area countries, banks reported that in net terms the share of
rejected loan applications increased in all four largest euro area countries. This was
driven by an increase in the share of rejected applications both for SMEs and large
firms in Germany and Spain, whereas in France and Italy the rejection rate increased
for loans to large enterprises and remained unchanged for loans to SMEs.
2.1.4 Net demand for loans to enterprises decreased
According to euro area banks, firms’ net demand for loans decreased in the fourth
quarter of 2022 (net percentage of -11%, after 13% in Q3 2022; see Chart 5). This is
the first net decline in demand since the beginning of 2021 and is more pronounced
compared with banks’ expectations from the previous quarter. The reported net
decline is consistent with the lower realised loan flows to non-financial corporations
observed in the available data for the fourth quarter of 2022. Loan demand
decreased in net terms for SMEs (net percentage of -17%, see Chart 6) and large
firms (net percentage of -11%) as well as for long-term loans (net percentage of -
19%), while it remained broadly unchanged for short-term loans (net percentage of -
1%).
Chart 5
Changes in demand for loans or credit lines to enterprises, and contributing factors
(net percentages of banks reporting an increase in demand, and contributing factors)
Notes: “Actual” values are changes that have occurred, while “expected” values are changes anticipated by banks. Net percentages
for the questions on demand for loans are defined as the difference between the sum of the percentages of banks responding
“increased considerably” and “increased somewhat” and the sum of the percentages of banks responding “decreased somewhat” and
“decreased considerably”. The net percentages for responses to questions relating to contributing factors are defined as the difference
between the percentage of banks reporting that the given factor contributed to increasing demand and the percentage reporting that it
contributed to decreasing demand. “Other financing needs” is the unweighted average of “mergers/acquisitions and corporate
restructuring” and “debt refinancing/restructuring and renegotiation”; “use of alternative finance” is the unweighted average of “internal
financing”, “loans from other banks”, “loans from non-banks”, “issuance/redemption of debt securities” and “issuance/redemption of
equity”.
-100
-80
-60
-40
-20
0
20
40
60
80
100
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain France Italy
Fixed investment
Inventories and working capital
General level of interest rates
Other financing needs
Use of alternative finance
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Demand - actual
Demand - expected
The euro area bank lending survey – Fourth quarter of 2022
16
Chart 6
Changes in demand for loans or credit lines to SMEs and large enterprises, and
contributing factors
(net percentages of banks reporting an increase in demand, and contributing factors)
Note: See the notes to Chart 5. Developments in the factors having an impact on loan demand across firm sizes were added in the
April 2022 survey round.
Banks indicated a significant negative contribution of the rising general level of
interest rates to loan demand (net percentage of -24%, see Chart 5 and Table 4). In
addition, fixed investment had a further dampening impact on loan demand (net
percentage -25%). While sentiment indicators such as the Purchasing Managers’
Index (PMI) showed some improvement in business activity for December, a
slowdown in investment is still expected in the coming months. As firms continue to
face elevated energy and production costs, banks also reported a positive impact of
inventories and working capital needs (net percentage of 16%) on demand for loan
to firms. However, its contribution was smaller than in the previous two quarters,
which likely reflects the gradual easing of supply bottlenecks in the last quarter of
2022, as captured by changes in the PMI delivery times indicator. The use of
alternative financing related to debt security issuance and loans from non-banks had
a positive impact (net percentage of 5% and 3% respectively) on loan demand,
indicating that with the increase in market rates, banks substituted away from
alternative sources of financing towards bank loans. In addition, other financing
needs related to mergers and acquisitions (net percentage of -6%) had a dampening
impact on demand, while debt restructuring (net percentage of 3%) supported loan
demand to a small extent. For both SMEs and large firms, the general level of
interest rates and firms’ financing needs related to fixed investment had a dampening
impact on demand, while inventories and working capital had a positive, but smaller
contribution as compared with the previous quarter (see Chart 6). In addition, other
financing needs related to mergers and acquisitions had a dampening impact on
loan demand for both SMEs and large firms.
-60
-40
-20
0
20
40
60
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Demand - actual
Demand - expected
-60
-40
-20
0
20
40
60
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Fixed investment
Inventories and working capital
General level of interest rates
Other financing needs
Use of alternative finance
Loans to SMEs
Loans to large enterprises
The euro area bank lending survey – Fourth quarter of 2022
17
Table 4
Factors contributing to changes in demand for loans or credit lines to enterprises
(net percentages of banks)
Country
Fixed investment
Inventories and
working capital
Other financing
needs
General level of
interest rates
Use of alternative
finance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area -11 -25 32 16 2 -1 -3 -26 0 2
Germany -19 -35 42 10 2 -3 -10 -42 3 2
Spain -25 -8 25 25 0 8 -42 -17 0 2
France 17 -8 25 8 13 4 25 0 -2 3
Italy -18 -36 36 27 -5 -14 -18 -36 -7 -4
Note: See the notes to Chart 5.
In the largest euro area countries, banks reported a net decrease in demand for
loans to firms in Germany, while loan demand increased in Spain and France and
was unchanged in Italy. The general level of interest rates had a negative effect on
loan demand in Germany, Spain and Italy, and a neutral effect in France. Financing
needs related to fixed investment had a negative contribution to demand across all
four large countries, while financing needs related to inventories and working capital
had a positive impact on loan demand. Banks in France and Spain indicated that
other financing needs related to debt refinancing and restructuring had a positive
impact on loan demand, while other financing needs related to mergers and
acquisitions (M&A) had a negative impact on loan demand in Germany and Italy. In
Italy, other financing needs related to debt refinancing and restructuring also had a
dampening impact on loan demand. In Germany, Spain and France, the positive
impact of the alternative sources of financing on loan demand was related to debt
security issuance. In addition, internal financing in Germany and loans from non-
banks in France also had a positive impact on loan demand. In Italy, the negative
impact of alternative financing was driven by internal financing and loans from non-
banks.
In the first quarter of 2023, banks expect a further net decline in demand for loans to
firms (net percentage of -15%), due to a significant decrease in demand for long-
term loans (net percentage of -29%). At the same time, the demand for short-term
loans is expected to increase to a small extent (net percentage of 5%). Net demand
for loans to large firms is expected to decrease more significantly (net percentage of
-15%) in comparison with the fall in net demand expected for loans to SMEs (net
percentage of -8%).
The euro area bank lending survey – Fourth quarter of 2022
18
2.2 Loans to households for house purchase
2.2.1 Credit standards for loans to households for house purchase
tightened strongly
In the fourth quarter of 2022, euro area banks reported a strong net tightening of
credit standards for loans to households for house purchase (net percentage of
banks at 21%, after 32% in 2022 Q2; see Chart 7 and Overview table), which,
however, was less pronounced than expected in the previous quarter (32%).
Chart 7
Changes in credit standards applied to the approval of loans to households for house
purchase, and contributing factors
(net percentages of banks reporting a tightening of credit standards, and contributing factors)
Notes: See the notes to Chart 1. “Cost of funds and balance sheet constraints” is the unweighted average of “banks’ capital and the
costs related to banks’ capital position”, “access to market financing” and “liquidity position”; “Risk perceptions” is the unweighted
average of “general economic situation and outlook”, “housing market prospects, including expected house price developments” and
“borrower’s creditworthiness”; “competition” is the unweighted average of “competition from other banks” and “competition from non-
banks”. The net percentages for “other factors” refer to further factors which were mentioned by banks as having contributed to
changes in credit standards.
Banks’ increased risk perceptions primarily drove the observed tightening, while
lower risk tolerance and higher cost of funds and balance sheet constraints
contributed moderately to the net tightening (see Chart 7 and Table 5). Banks
reported a similar tightening impact from increased risk perceptions compared with
the previous quarter, stemming from concerns regarding the general economic
outlook, borrower creditworthiness and housing market prospects. This marks the
fourth consecutive quarter of both risk perceptions and risk tolerance having a
tightening impact. There was also a moderate tightening impact from banks’ cost of
funds and balance sheet constraints. Other country-specific factors also contributed
-25
-15
-5
5
15
25
35
45
55
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain France Italy
Banks' risk tolerance
Risk perceptions
Competition
Cost of funds and balance sheet constraints
Other factors
-10
0
10
20
30
40
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Credit standards - actual
Credit standards - expected
The euro area bank lending survey – Fourth quarter of 2022
19
moderately to the net tightening.
5
At the same time, pressure from competition from
other banks had a slight tightening impact.
Across all four largest euro area countries, credit standards for loans to households
for house purchase tightened in net terms. Some banks in France noted that the
usury rate (a maximum interest rate on loans) had contributed towards a tightening.
6
Across all four largest euro area countries, increased risk perceptions and banks’
cost of funds and balance sheet constraints had a tightening impact, while
competition had a neutral impact. Decreased risk tolerance had a tightening impact
in Spain and Italy, but a neutral effect in Germany and France.
In the first quarter of 2023, euro area banks again expect a net tightening of credit
standards on loans to households for house purchase (net percentage of 16%).
Table 5
Factors contributing to changes in credit standards for loans to households for house
purchase
(net percentages of banks)
Country
Cost of funds and
balance sheet
constraints
Pressure from
competition Perception of risk Banks’ risk tolerance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 4 5 0 2 17 18 8 6
Germany 5 2 0 0 29 27 11 0
Spain 7 3 0 0 23 20 10 10
France 3 13 0 0 6 7 0 0
Italy 9 9 0 0 6 9 9 18
Note: See the notes to Chart 7.
2.2.2 Terms and conditions on loans to households for house purchase
tightened strongly
Banks reported a strong net tightening of overall terms and conditions for housing
loans in the fourth quarter of 2022, reflecting the substantial increase in euro area
mortgage interest rates since the beginning of 2022 (net percentage of 29%, after
24% in the previous quarter; see Chart 8 and Table 6). The net tightening is primarily
driven by widening margins on both average and riskier loans. This contrasts with
previous quarters, in which loan margins narrowed due to relevant market reference
rates rising faster than interest rates charged on housing loans. In addition, there
was a net tightening of loan-to-value (LTV) ratios and a moderate net tightening of
other loan size limits (part of other terms and conditions in Chart 8, left-hand side)
alongside a slight moderate tightening contribution from increased collateral
5
In France, the usury rate (taux d’usure) was reported to be affecting credit standards. This is set
quarterly by the Banque de France and is effective from the first day of a given quarter. It sets a legal
limit on the level of interest that can be charged on a list of different categories of loans in order to
protect borrowers from being charged excessive rates. The current list of usury rates can be found
under this link.
6
See footnote 5 above.
The euro area bank lending survey – Fourth quarter of 2022
20
requirements and loan maturity limits. Non-interest rate charges were broadly
unchanged.
Chart 8
Changes in terms and conditions on loans to households for house purchase
(net percentages of banks reporting a tightening of terms and conditions)
Notes: “Margins” are defined as the spread over relevant market reference rates. “Other terms and conditions” is the unweighted
average of “loan-to-value ratio”, “other loan size limits”, “non-interest rate charges” and “maturity”. The net percentages for “other
factors” refer to further factors which were mentioned by banks as having contributed to changes in terms and conditions.
Table 6
Changes in terms and conditions on loans to households for house purchase
(net percentages of banks)
Country
Overall terms and conditions Banks’ margins on average loans Banks’ margins on riskier loans
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 24 29 -15 7 -13 8
Germany 39 18 21 14 25 21
Spain 50 40 -10 30 0 30
France 0 40 -67 -30 -67 -30
Italy 36 55 -27 9 -18 0
Note: See the notes to Chart 8.
Banks’ higher cost of funds and balance sheet constraints as well as increased risk
perceptions made the strongest contributions to the net tightening of overall terms
and conditions, alongside a smaller contribution from decreasing risk tolerance (see
Table 7). Higher market interest rates are feeding into banks’ cost of funds, while
increased risk perceptions and lower risk tolerance reflect broader economic risks.
Competition had a broadly neutral impact on terms and conditions.
In all four largest euro area economies, overall terms and conditions for housing
loans tightened in net terms. However, loan margins continued to contract in France
on both average and riskier loans because the interest rate on loans had not risen as
quickly as market reference rates, in part owing to the usury rate (see footnote 5).
Loan margins widened for both average and riskier loans in Germany and Spain,
while loan margins widened for average loans in Italy, but were unchanged for riskier
-150
-110
-70
-30
10
50
90
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain France Italy
Margins on average loans
Margins on riskier loans
Collateral requirements
Other terms and conditions
Other factors
-40
-30
-20
-10
0
10
20
30
40
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Overall terms and conditions
The euro area bank lending survey – Fourth quarter of 2022
21
loans. German banks also reported a tightening of LTV ratios, loan maturities, non-
interest rate charges and other loan size limits. French and Italian banks both
reported tighter LTV ratios and other loan size limits, while Italian banks also
reported tighter loan maturity limits. Banks in all four largest euro area countries
reported that cost of funds and balance sheet constraints had a net tightening effect.
Higher risk perceptions and a lower risk tolerance had a tightening impact in
Germany, Italy and Spain and no impact in France, while pressure from competition
had an easing impact in Spain, and no impact in the other three largest economies.
Table 7
Factors contributing to changes in overall terms and conditions on loans to
households for house purchase
(net percentages of banks)
Country
Cost of funds and
balance sheet
constraints
Pressure from
competition Perception of risk Banks’ risk tolerance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 18 21 -3 1 16 15 8 8
Germany 11 7 4 0 32 14 14 4
Spain 40 30 -10 -10 10 30 0 20
France 17 40 -8 0 0 0 0 0
Italy 36 36 -9 0 27 27 18 18
Note: The net percentages for these questions relating to contributing factors are defined as the difference between the percentage of
banks reporting that the given factor contributed to a tightening and the percentage reporting that it contributed to an easing.
2.2.3 Rejection rate for housing loans increased markedly
In the fourth quarter of 2022, euro area banks reported a marked net increase in the
share of rejected formal and informal applications for housing loans, which, however,
was lower than in the previous quarter (25%, after 31%). This reflects the tightening
of credit standards and the pressure on households’ debt servicing capacity from the
higher cost of living and rising interest rates. The share of rejected loan applications
increased in all four largest euro area countries.
2.2.4 Net demand for housing loans decreased substantially
Banks reported a substantial decrease in net demand for housing loans (net
percentage of banks of -74%, after -42% in the third quarter of 2022; see Chart 9
and Overview table), which is the largest recorded decrease since the beginning of
the survey.
The euro area bank lending survey – Fourth quarter of 2022
22
Chart 9
Changes in demand for loans to households for house purchase, and contributing
factors
(net percentages of banks reporting an increase in demand, and contributing factors)
Notes: See the notes to Chart 5. “Other financing needs” is the unweighted average of “debt refinancing/restructuring and
renegotiation” and “regulatory and fiscal regime of housing markets”; “use of alternative finance” is the unweighted average of “internal
finance of house purchase out of savings/down payment”, “loans from other banks” and “other sources of external finance”.
Rising interest rates, declining consumer confidence and housing market prospects
all contributed strongly towards this substantial fall in demand (see Chart 9 and Table
8). Together, these factors reflect the current environment of lower consumer
confidence and economic slowdown, alongside increasing interest rates in response
to high inflation. Additionally, this marks the second consecutive quarter in which
housing market prospects contributed negatively to demand, for the first time since
2013. This is consistent with the recently observed slowdown in the rate of growth of
house prices in the euro area. Other financing needs and the use of alternative
finance also had a smaller negative contribution to demand.
Banks in all four largest euro area countries reported a net decrease in demand for
housing loans. The fall was particularly pronounced in Germany and France, where
the net percentage of banks reporting a decrease was 93% and 90% respectively.
Declining consumer confidence and the general level of interest rates had a strong
downward impact across all four countries. Housing market prospects had a
noteworthy negative effect on demand in France and Germany, a smaller negative
impact in Italy and no impact in Spain.
In the first quarter of 2023, banks expect another strong net decline in the demand
for housing loans (net percentage of banks of -49%).
-200
-160
-120
-80
-40
0
40
80
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Demand - actual
Demand - expected
-280
-240
-200
-160
-120
-80
-40
0
40
80
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain France Italy
Housing market prospects
Consumer confidence
General level of interest rates
Other financing needs
Use of alternative finance
The euro area bank lending survey – Fourth quarter of 2022
23
Table 8
Factors contributing to changes in demand for loans to households for house
purchase
(net percentages of banks)
Country
Housing market
prospects
Consumer
confidence
Other financing
needs
General level of
interest rates
Use of alternative
finance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area -22 -50 -36 -54 -4 -4 -55 -77 -5 -2
Germany -39 -79 -54 -64 -5 -7 -79 -86 -8 -1
Spain 0 0 -30 -20 0 0 -40 -40 -3 0
France -8 -50 -17 -60 -4 0 -42 -90 -3 0
Italy 9 -9 -9 -27 -5 -9 -36 -64 -6 0
Note: See the notes to Chart 9.
2.3 Consumer credit and other lending to households
2.3.1 Credit standards for consumer credit and other lending to
households tightened substantially
Banks reported a substantial net tightening of credit standards on consumer credit
and other lending to households in the fourth quarter of 2022 (net percentage of 17%
after 21% in 2022 Q3; see Chart 10 and Overview table). This is slightly less than
expected in the previous quarter (20%).
Banks’ increased risk perceptions mainly contributed to the net tightening of credit
standards (see Chart 10 and Table 9). This was mostly related to perceptions
regarding the economic outlook and the creditworthiness of consumers, although the
risk related to the collateral demanded also had a moderate tightening effect.
Decreased risk tolerance and banks’ cost of funds and balance sheet conditions had
a smaller tightening effect while competition had a broadly neutral effect.
Across the largest euro area countries, credit standards for consumer credit and
other lending to households tightened in net terms in Germany, Spain and France,
and were unchanged on balance in Italy. Increased risk perceptions and the cost of
funds and balance sheet constraints had a tightening impact in all the largest
countries. Changes in risk tolerance contributed towards the tightening observed in
Spain and Germany but had no impact in France and Italy. Italian banks reported a
small easing effect owing to competition.
In the first quarter of 2023, euro area banks again expect a net tightening of credit
standards for consumer credit and other lending to households (net percentage of
15%).
The euro area bank lending survey – Fourth quarter of 2022
24
Chart 10
Changes in credit standards applied to the approval of consumer credit and other
lending to households, and contributing factors
(net percentages of banks reporting a tightening of credit standards, and contributing factors)
Notes: See the notes to Chart 1. “Cost of funds and balance sheet constraints” is the unweighted average of “banks’ capital and the
costs related to banks’ capital position”, “access to market financing” and “liquidity position”; “Risk perceptions” is the unweighted
average of “general economic situation and outlook”, “creditworthiness of consumers” and “risk on the collateral demanded”;
“competition” is the unweighted average of “competition from other banks” and “competition from non-banks”. The net percentages for
“other factors” refer to further factors which were mentioned by banks as having contributed to changes in credit standards.
Table 9
Factors contributing to changes in credit standards for consumer credit and other
lending to households
(net percentages of banks)
Country
Cost of funds and
balance sheet
constraints
Pressure from
competition Perception of risk Banks’ risk tolerance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 3 4 0 1 14 15 3 3
Germany 4 2 0 0 26 18 10 4
Spain 6 3 0 0 17 28 8 17
France 2 10 0 0 2 10 -7 0
Italy 3 3 4 -4 13 5 -8 0
Note: See the notes to Chart 10.
2.3.2 Terms and conditions on consumer credit and other lending to
households tightened
Banks’ overall terms and conditions applied when granting consumer credit and
other lending to households tightened in net terms (net percentage of 20%, after
22% in the previous quarter; see Chart 11 and Table 10). In contrast to the previous
quarter, margins on both average and riskier loans widened.
-10
-5
0
5
10
15
20
25
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Credit standards - actual
Credit standards - expected
-20
-10
0
10
20
30
40
50
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain France
Italy
Banks' risk tolerance
Risk perceptions
Competition
Cost of funds and balance sheet constraints
Other factors
The euro area bank lending survey – Fourth quarter of 2022
25
Chart 11
Changes in terms and conditions on consumer credit and other lending to
households
(net percentages of banks reporting a tightening of terms and conditions)
Notes: “Margins” are defined as the spread over a relevant market reference rate. “Other terms and conditions” is the unweighted
average of “size of the loan”, “non-interest rate charges” and “maturity”. The net percentages for “other factors” refer to further factors
which were mentioned by banks as having contributed to changes in terms and conditions.
Banks’ cost of funds and balance sheet conditions contributed most to the net
tightening of terms and conditions (net percentage of 17%, see Table 11). Increased
risk perceptions and declining risk tolerance also had a tightening impact on overall
terms and conditions, while competition had a slight easing impact.
Across all four largest euro area countries, overall terms and conditions for
consumer credit and other lending to households tightened in net terms. Despite the
tightening of overall terms and conditions, loan margins narrowed on average loans
in France and on riskier loans in Italy, while loan margins widened in Germany and
Spain for both average and riskier loans. Across all four countries, cost of funds and
balance sheet conditions had a tightening impact, while increased risk perceptions
had a tightening impact in Germany, Spain and France, but a neutral impact in Italy.
Pressure from competition had an easing impact in Spain and Germany and a
tightening impact in Italy. Banks’ risk tolerance had a tightening impact in Germany
and Spain but a neutral impact in France and Italy.
-90
-70
-50
-30
-10
10
30
50
70
90
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain
France
Italy
Margins on average loans
Margins on riskier loans
Collateral requirements
Other terms and conditions
Other factors
-30
-20
-10
0
10
20
30
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Overall terms and conditions
The euro area bank lending survey – Fourth quarter of 2022
26
Table 10
Changes in terms and conditions on consumer credit and other lending to
households
(net percentages of banks)
Country
Overall terms and conditions Banks’ margins on average loans Banks’ margins on riskier loans
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 22 20 -6 5 -3 7
Germany 17 7 20 14 13 11
Spain 42 50 -17 17 -8 8
France 13 14 -27 -7 -20 0
Italy 77 69 -15 0 -15 -8
Note: See the notes to Chart 11.
Table 11
Factors contributing to changes in overall terms and conditions on consumer credit
and other lending to households
(net percentages of banks)
Country
Cost of funds and
balance sheet
constraints
Pressure from
competition Perception of risk Banks’ risk tolerance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area 29 17 -2 -2 11 11 2 5
Germany 10 4 0 -7 17 14 10 7
Spain 42 33 -25 -17 0 33 0 17
France 33 21 0 0 13 7 -7 0
Italy 69 62 8 8 8 0 0 0
Note: The net percentages for these questions relating to contributing factors are defined as the difference between the percentage of
banks reporting that the given factor contributed to a tightening and the percentage reporting that it contributed to an easing.
2.3.3 Rejection rate for consumer credit and other lending to households
increased
Euro area banks reported a net increase in the share of rejected formal and informal
applications for consumer credit and other lending to households (20%, after 13% in
the previous survey round). Across the largest euro area countries, the rejection rate
increased on balance in Germany, France and Italy, but was unchanged in Spain.
2.3.4 Net demand for consumer credit and other lending to households
decreased strongly
In the fourth quarter of 2022, banks reported a strong net decrease in demand for
consumer credit and other lending to households (net percentage of banks at -29%,
after -11% in the previous quarter; see Chart 12 and Overview table). This decline
was greater than prior expectations (-17%).
The euro area bank lending survey – Fourth quarter of 2022
27
Chart 12
Changes in demand for consumer credit and other lending to households, and
contributing factors
(net percentages of banks reporting an increase in demand, and contributing factors)
Notes: See the notes to Chart 5. “Use of alternative finance” is the unweighted average of “internal financing out of savings”, “loans
from other banks” and “other sources of external finance”. “Consumption exp. (real estate)” denotes “consumption expenditure
financed through real estate-guaranteed loans”.
The general level of interest rates, declining consumer confidence and lower
consumption of durables primarily contributed towards this net fall in demand (see
Chart 12 and Table 12). All three factors contributed more towards the fall in demand
than in the previous quarter.
Across all four largest euro area countries, a net decrease in demand was reported.
The general level of interest rates and lower consumer confidence contributed
negatively towards demand in all four countries, while consumption of durables had
a negative impact in Germany, France and Italy.
In the first quarter of 2023, banks expect demand for consumer credit and other
lending to households to decrease (net percentage of -20%).
Table 12
Factors contributing to changes in demand for consumer credit and other lending to
households
(net percentages of banks)
Country
Spending on
durable goods
Consumer
confidence
Consumption exp.
(real estate)
General level of
interest rates
Use of alternative
finance
Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022
Euro area -6 -26 -17 -34 -2 -4 -17 -37 0 -1
Germany -17 -46 -20 -43 -3 -4 -20 -43 -1 -1
Spain 0 0 -33 -33 0 -8 -25 -33 -3 -3
France 0 -36 -13 -21 0 0 -13 -36 2 0
Italy -8 -8 -8 -38 0 -8 -38 -54 0 0
Note: See the notes to Chart 12.
-120
-100
-80
-60
-40
-20
0
20
40
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Demand - actual
Demand - expected
-140
-120
-100
-80
-60
-40
-20
0
20
40
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Germany Spain
France
Italy
Spending on durable goods
Consumer confidence
General level of interest rates
Consumption exp. (real estate)
Use of alternative finance
The euro area bank lending survey – Fourth quarter of 2022
28
3 Ad hoc questions
3.1 Banks’ access to retail and wholesale funding
The January 2023 survey included a question asking banks to assess the extent to
which the situation in financial markets affected their access to retail and wholesale
funding.
In the fourth quarter of 2022, banks reported that their access to retail funding and
securitisation deteriorated moderately (see Chart 13 and Table 13). The deterioration
in access to retail funding is in line with the increase in deposit rates up to November
(the last available data point). Access to debt securities and money markets
improved to a small extent. For money markets, this was solely driven by a small
improvement in access to very short-term money markets. For debt securities,
access to short-term securities improved somewhat, while access to medium-to-
long-term debt securities deteriorated slightly. In addition, this contrasts with the
strong deterioration in access to debt securities reported in recent quarters.
Chart 13
Banks’ assessment of funding conditions and the ability to transfer credit risk off the
balance sheet
(net percentages of banks reporting a deterioration in market access)
Note: The net percentages are defined as the difference between the sum of the percentages of banks responding “deteriorated
considerably” and “deteriorated somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased
considerably”. The last period denotes expectations indicated by banks in the current round.
-30
-20
-10
0
10
20
30
40
Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Retail funding
Money markets
Debt securities
Securitisation
The euro area bank lending survey – Fourth quarter of 2022
29
Table 13
Banks’ assessment of funding conditions and the ability to transfer credit risk off the
balance sheet
(net percentages of banks reporting a deterioration in market access)
Retail funding
Interbank unsecured
money market
Wholesale debt
securities Securitisation
Q3 2022 4 0 17 11
Q4 2022 5 -2 -2 8
Note: See the notes to Chart 13.
In the first quarter of 2023 euro area banks expect, on balance, a generally moderate
deterioration in their access to both retail and market funding, reflecting expectations
of further increases in the ECB’s key policy interest rates.
3.2 Banks’ adjustment to regulatory and supervisory action
The January 2023 BLS questionnaire included an annual
7
ad hoc question to assess
the extent to which new regulatory or supervisory requirements affected banks’
lending policies via the potential impact on their capital, leverage, liquidity position or
provisioning and the credit conditions that they apply to loans. These new
requirements cover regulatory or supervisory action that has been implemented
recently or that is expected to be implemented in the near future. Furthermore, banks
were also asked to indicate the effects on their funding conditions.
7
Until the January 2020 BLS, this question referred to the changes over the past/next six months. As of
the January 2021 BLS, it refers to the changes over the past/next 12 months.
The euro area bank lending survey – Fourth quarter of 2022
30
Chart 14
Impact of regulatory or supervisory action on banks’ risk-weighted assets, capital and
funding conditions
(net percentages of banks)
Notes: For “total assets”, “risk-weighted assets” and “capital”, the net percentages are defined as the difference between the sum of
the percentages of banks responding “increased considerably” and “increased somewhat” and the sum of the percentages for
“decreased somewhat” and “decreased considerably”. For “banks’ funding conditions”, the net percentages are defined as the
difference between the sum of the percentages of banks responding “experienced a considerable tightening” and “experienced a
moderate tightening” and the sum of the percentages for “experienced a moderate easing” and “experienced a considerable easing”.
The last period denotes expectations indicated by banks in the current round.
Euro area banks reported a strengthening of their capital position in 2022 in
response to new regulatory or supervisory requirements (see Chart 14 and Table
14), albeit to a lesser extent than in 2021. Developments in banks’ capital position
were driven more by retained earnings than by capital issuance. Banks indicated that
regulatory or supervisory measures had a positive impact on banks’ total assets,
while liquid assets remained broadly unchanged. Risk-weighted assets remained
broadly unchanged in the context of regulatory and supervisory requirements,
explained by unchanged average loans. At the same time, banks indicated that
regulatory or supervisory action had a small tightening impact on their funding
conditions.
Table 14
Impact of regulatory or supervisory action on banks’ risk-weighted assets, capital and
funding conditions
(net percentages)
Total assets Risk-weighted assets Capital
Impact on
banks’
funding
conditions Total
Liquid
assets Total
Average
loans
Riskier
loans Total
Retained
earnings
Capital
issuance
2021 19 19 14 15 2 21 19 9 -4
2022 7 1 0 1 -4 9 10 2 2
Note: See the notes to Chart 14.
Supervisory or regulatory action had a net tightening impact on banks’ credit
standards and credit margins across all loan categories in 2022 (see Chart 15 and
-30
-20
-10
0
10
20
30
40
H1 2019 H2 2019 2020 2021
2022 2023
Total assets Risk-weighted assets Capital Banks' funding conditions
The euro area bank lending survey – Fourth quarter of 2022
31
Table 15). The net tightening impact was stronger across all loan categories than in
the previous two years.
Chart 15
Contribution of regulatory or supervisory action to the tightening of banks’ credit
standards and margins
(net percentages of banks)
Notes: The net percentages are defined as the difference between the sum of the percentages of banks responding “tightened
considerably” and “tightened somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased
considerably”. The last period denotes expectations indicated by banks in the current round.
Looking ahead to 2023, euro area banks expect regulatory or supervisory action to
support their capital positions and lead to a small increase in their total assets while
they expect a broadly unchanged impact on their risk-weighted assets. In addition,
for their funding conditions, banks expect a net tightening impact, stronger than the
impact for 2022. Banks also expect regulatory or supervisory action will have a
tightening impact for credit standards and credit margins across all loan categories.
Table 15
Contribution of regulatory or supervisory action to the tightening of banks’ credit
standards and margins
(net percentages)
Impact of regulatory or supervisory action on the
tightening of:
credit standards credit margins
2021 2022 2021 2022
Impact on loans and credit lines to SMEs 1 8 1 19
Impact on loans and credit lines to large enterprises 6 14 2 20
Impact on loans to households for house purchase 10 15 0 12
Impact on consumer credit and other lending to households 4 9 2 9
Note: See the notes to Chart 15.
-5
0
5
10
15
20
25
-5
0
5
10
15
20
25
2019 H2 2020 2021 2022 2023 2019 H2 2020 2021 2022 2023
Credit margins
Loans to SMEs
Loans to large firms
Loans to households for house purchase
Consumer credit and other lending to households
Credit standards
The euro area bank lending survey – Fourth quarter of 2022
32
3.3 The impact of banks’ NPL ratios on their lending policies
The January 2023 survey questionnaire included a biannual ad hoc question on the
impact of banks’ non-performing loan (NPL) ratios on changes in their lending
policies and the factors through which NPL ratios contributed to changes in their
lending policies. Banks were asked about the impact on loans to enterprises, loans
to households for house purchase and on consumer credit and other lending to
households over the past six months and over the next six months.
Euro area banks reported a broadly neutral impact of NPL ratios on credit standards
for loans to enterprises in the second half of 2022 (net percentage of 1%, after 2% in
the first half of 2022, see Chart 16), a neutral impact for loans to households for
house purchase (0% after 0%) and a broadly neutral impact for consumer credit and
other lending (-1% after -2%). Banks reported that NPL ratios had a slight tightening
impact on terms and conditions for loans for enterprise (2%, see Chart 16) and a
broadly neutral impact for housing loans and consumer credit (1% and -1%
respectively).
Banks referred to supervisory requirements, access to market financing and their
liquidity positions contributing to a slight net easing impact of NPL ratios on lending
conditions in the second half of 2022 (see Chart 17). On the other hand, costs of
capital and declining risk tolerance contributed to a slight tightening impact of NPL
ratios on lending conditions.
Chart 16
Impact of banks’ NPL ratios on credit standards and terms and conditions
(net percentages of banks)
Notes: The NPL ratio is defined as the stock of gross NPLs on a bank’s balance sheet as a percentage of the gross carrying amount of
loans. Changes in credit standards and/or terms and conditions can be caused by changes to the NPL ratio or by changes to
regulations or the bank’s assessment of the level of the NPL ratio. Net percentages are defined as the difference between the sum of
the percentages of banks responding “contributed considerably to tightening” and “contributed somewhat to tightening” and the sum of
the percentages of banks responding “contributed somewhat to easing” and “contributed considerably to easing”. The dashed bars
denote expectations indicated by banks in the current round.
Over the next six months, euro area banks expect NPL ratios to have a tightening
impact on both credit standards and terms and conditions for all categories of loans.
Increased risk perceptions and lower risk tolerance are the primary drivers of this
-3
-2
-1
0
1
2
3
4
5
6
7
Loans to
enterprises
Loans to
households for
house purchase
Consumer credit
and other lending
Loans to
enterprises
Loans to
households for
house purchase
Consumer credit
and other lending
Impact on bank's credit standards Impact on bank's credit terms and conditions
Q1 2022 - Q2 2022
Q3 2022 - Q4 2022
Q1 2023 - Q2 2023
The euro area bank lending survey – Fourth quarter of 2022
33
expected tightening through NPL ratios, while costs of capital, cost of balance sheet
clean-up, pressure from supervisory requirements and access to market financing
are expected to have relatively smaller tightening contributions through NPL ratios.
Chart 17
Contributions of factors through which NPL ratios affect banks’ policies on lending to
enterprises and households
(net percentages of banks)
Note: See the notes on Chart 16.
3.4 Bank lending conditions and loan demand across main
sectors of economic activity
The January 2023 survey questionnaire included a biannual ad hoc question to
collect information on changes in banks’ credit standards, overall terms and
conditions and loan demand across the main economic sectors over the past and
next six months. Banks were asked to report information covering five sectors:
manufacturing, construction (excluding real estate), services (excluding financial
services and real estate), wholesale and retail trade, and real estate (including both
real estate construction and real estate services). Starting from this survey round, a
sub-category of the manufacturing sector – energy-intensive manufacturing – has
been added.
Euro area banks indicated a more pronounced net tightening of credit standards for
new loans to enterprises across all the main economic sectors in the second half of
2022 (see Chart 18). These developments are in line with the substantial net
tightening of credit standards for loans to firms in the third and fourth quarters of
2022. Across the main sectors of economic activity, credit standards tightened in
manufacturing (17%, after 2%), with the tightening being particularly strong for
energy-intensive manufacturing (30%). In the second half of 2022, the tightening of
credit standards was also more pronounced in commercial (25%, after 17%) and
residential real estate (21%, after 16%), construction (16%, after 9%) and wholesale
and retail trade (14%, after 8%) when compared with the first half of 2022. After no
-4
-2
0
2
4
6
8
10
Access to market
financing
Costs related to
balance sheet
clean-up
operations
Costs related to
capital position
Liquidity position Perception of risk Pressure related
to supervisory or
regulatory
requirements
Risk tolerance
Q1 2022 - Q2 2022
Q3 2022 - Q4 2022
Q1 2023 - Q2 2023
The euro area bank lending survey – Fourth quarter of 2022
34
change in the credit standards for loans in the services sector had been reported in
the first half of 2022, there was a moderate tightening (6%, after 0%) in the second
half of 2022. Banks’ overall terms and conditions tightened across all main sectors of
economic activity, with the most pronounced tightening in the commercial real estate
and energy-intensive manufacturing sectors (see Chart 19).
Over the next six months, euro area banks expect a net tightening of credit
standards and terms and conditions for loans to firms across all main sectors of
economic activity.
Chart 18
Changes in credit standards for new loans to enterprises across main economic
sectors
(net percentages of banks; over the past six months and the next six months)
Notes: The net percentages refer to the difference between the sum of the percentages of banks responding “deteriorated
considerably” and “deteriorated somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased
considerably". The dashed bars denote expectations indicated by banks in the current round.
Banks reported a net decrease in the demand for loans or credit lines across all main
economic sectors, while in energy-intensive manufacturing there was a small
increase in demand, in the context of elevated energy prices (see Chart 20). This
reflects the more recent developments in overall demand for loans to firms, which
decreased in the last quarter of 2022. Demand for loans decreased the most in net
terms in commercial and residential real estate and construction. These
developments are in line with the expected contraction in housing investment as
interest rates increase.
Over the next six months, euro area banks also expect a decline in net demand
across the main economic sectors, which they expect to be most pronounced in real
estate and construction sectors. Net demand is expected to be unchanged in
energy-intensive manufacturing in the first half of 2023.
-5
0
5
10
15
20
25
30
35
Manufacturing Of which: energy-
intensive
manufacturing
Construction Services Wholesale and
retail trade
Commercial real
estate
Residential real
estate
Q1 2022 - Q2 2022
Q3 2022 - Q4 2022
Q1 2023 - Q2 2023
The euro area bank lending survey – Fourth quarter of 2022
35
Chart 19
Changes in terms and conditions for new loans to enterprises across main economic
sectors
(net percentages of banks; over the past six months and the next six months)
Note: See the notes on Chart 18.
Chart 20
Changes in demand for loans or credit lines to enterprises across main economic
sectors
(net percentages of banks)
Notes: The net percentages refer to the difference between the sum of the percentages of banks responding “increased considerably”
and “increased somewhat” and the sum of the percentages of banks responding “decreased somewhat” and “decreased
considerably". The dashed bars denote expectations indicated by banks in the current round.
-5
0
5
10
15
20
25
30
35
Manufacturing Of which: energy-
intensive
manufacturing
Construction Services Wholesale and
retail trade
Commercial real
estate
Residential real
estate
Q1 2022 - Q2 2022
Q3 2022 - Q4 2022
Q1 2023 - Q2 2023
-40
-30
-20
-10
0
10
Manufacturing Of which: energy-
intensive
manufacturing
Construction Services Wholesale and
retail trade
Commercial real
estate
Residential real
estate
Q1 2022 - Q2 2022
Q3 2022 - Q4 2022
Q1 2023 - Q2 2023
© European Central Bank, 2023
Postal address 60640 Frankfurt am Main, Germany
Telephone +49 69 1344 0
Website www.ecb.europa.eu
All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged.
For specific terminology please refer to the ECB glossary (available in English only).
PDF ISSN 1830-5989, QB-BA-23-001-EN-N
HTML ISSN 1830-5989, QB-BA-23-001-EN-Q
