Central Banks

ECB Says Banks Tighten Credit Standards Further 

  • Bank Lending Survey shows demand for loans continues to fall
  • Poll is key input to assess unprecedented interest-rate hiking

The financial district in Frankfurt, Germany

Photographer: Kirill Kudryavtsev/AFP/Getty Images

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Banks in the euro zone tightened credit standards further in the third quarter due to rising interest rates and a worsening economic backdrop, the European Central Bank said.

While the pace moderated a touch, lenders continued to toughen internal guidelines and approval criteria for businesses loans, according to the ECB’s quarterly Bank Lending Survey, published Tuesday. Stricter standards were also imposed for mortgages and other consumer credit.