Euro-Zone Banks Further Tighten Companies’ Credit Standards

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessEuro-Zone Banks Further Tighten Companies' Credit StandardsEuro-zone banks tightened corporate credit standards further as they see higher risks due to geopolitical events including the Iran war.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.ev1se5k}0blui{zxype(5fh[_media_dl_1.png ECB(Bloomberg) — Euro-zone banks tightened corporate credit standards further as they see higher risks due to geopolitical events including the Iran war.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountLenders also reported more rigid standards for mortgages, consumer credit and other lending to households, the European Central Bank said Tuesday in its second-quarter Bank Lending Survey.“Perceived risks to the economic outlook and banks’ lower risk tolerance remained the main factors contributing to the tightening, as banks remain highly attentive to risks related to geopolitical and energy developments,” it said. The results arrive just ahead of the ECB’s two-day monetary-policy meeting, with officials expected to keep borrowing costs on hold after a quarter-point hike in June. Economists and investors widely anticipate another increase at the September gathering.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againPolicymakers are still assessing the fallout from the Middle East conflict and its recent renewed escalation. Energy prices have jumped on the worsening hostilities, and Brent crude oil rose to above $90 a barrel for the first time in more than five weeks on Monday.Bank lending plays a key role in driving activity, especially for corporate investment, and also acts as an early indicator of how rate changes are filtering through the broader economy.Tuesday’s report also showed a slight increase in companies’ appetite for credit, driven by “higher demand for inventories and working capital, demand for fixed investment from large firms and other financing needs related to debt refinancing and restructuring.”The ECB highlighted that demand for housing loans “declined markedly.” “Deteriorating consumer confidence and changes in interest rates were the main drag on housing loan demand, with worsening housing market prospects also weighing negatively,” the ECB said. This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.