ECB survey finds tighter bank lending for euro-area firms

Euro-area firms reported tighter bank lending conditions and a widening financing gap in the third quarter of 2026, according to the European Central Bank’s latest survey of businesses.

A net 46% of firms said bank loan interest rates had risen, up from 42% in the previous quarter. The balance reporting tighter loan availability also worsened: availability fell by a net 5%, compared with a net 1% decline in the second quarter. By contrast, firms’ need for bank loans fell by a net 2%, leaving the ECB’s financing-gap indicator at a positive 2%, down from 3%. A positive reading indicates that the gap between financing needs and loan availability is widening.

The results came from the 40th Survey on the Access to Finance of Enterprises, conducted between 26 August and 2 October among 12,822 euro-area firms. The ECB said more firms expect the availability of external financing to fall over the next three months.

The reported changes varied by firm size. Large firms more often reported higher loan interest rates, with a net 55% doing so, compared with 38% of small and medium-sized enterprises (SMEs). Loan availability declined for both groups: a net 6% of large firms and 5% of SMEs reported a fall. Large firms also reported a net decrease in loan needs, while SMEs’ needs were broadly unchanged.

Other financing costs, including charges, fees and commissions, rose for a net 27% of firms, down from 31% in the previous quarter. A net 14% reported higher collateral requirements, up from 10%.

The ECB said firms continued to identify the general economic outlook as the main constraint on access to external finance. A net 31% said it had a negative effect, up from 29% in the previous survey. Firms’ capital positions and creditworthiness continued to have a positive impact, the bank said.

The central bank cautioned that first-time respondents made up the majority of this round’s sample, a substantial change that makes some numerical comparisons harder to interpret. It said selling-price expectations and inflation expectations rose significantly in the full sample, but remained broadly unchanged among firms that had also taken part in the previous round.