• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

ECB banks set to toughen lending rules

Jan 30 2013 14:59

Frankfurt - Eurozone banks expect to tighten their lending rules in the coming months even as their own access to funding has improved, the European Central Bank said on Wednesday.

In its latest quarterly Bank Lending Survey, which quizzed a sample of 131 banks in the euro area, the ECB said a net 15% of respondents had said they expected to tighten the criteria that businesses must meet to take out loans in the first quarter of the year.

A net 13% of banks had already tightened their credit standards in the fourth quarter, the survey - conducted between December 14 and January 10 - showed.

At the same time, the survey found that banks' access to retail and wholesale funding had improved in the fourth quarter of 2012 and would continue to do so in the first quarter of this year.

On the demand side, overall demand for loans remained weak, the survey said.

"Euro area banks continued to report a pronounced net decline in demand for loans to enterprises in the fourth quarter of 2012," but a less pronounced decline in demand for loans to households for house purchase and for consumer credit, it said.

"As in the previous quarter... the net decline in the fourth quarter of 2012 was driven mainly by a substantial negative impact from fixed investment on the financing needs of firms," it explained.

Looking ahead to the current quarter, "banks expect a less pronounced net decline in demand for loans to enterprises, while they expect a more pronounced net decline in demand for loans for house purchase," the ECB said.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

european central bank


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote