Euro area firms reported a further tightening of bank lending in the third quarter of 2026, according to the European Central Bank’s Survey on the Access to Finance of Enterprises (SAFE). A net 46 percent of firms said interest rates on bank loans had risen, up from 42 percent in the previous round. Large firms felt the squeeze most, with a net 55 percent reporting higher rates, up from 41 percent.
Small and medium-sized enterprises saw a smaller increase in loan costs. A net 38 percent reported higher rates, down from 43 percent. Collateral requirements also rose, with a net 14 percent of firms reporting tighter demands, compared with 10 percent before.
Loan availability keeps falling
Bank loan availability declined by a net 5 percent in the quarter, worse than the minus 1 percent recorded previously. The drop was concentrated among large firms, where availability fell by a net 6 percent after rising 4 percent in the prior round.
For SMEs the picture was steadier, with availability down a net 5 percent against minus 4 percent before. Overall, the decline in availability exceeded what firms needed, the survey found.
Demand and outlook
Loan needs eased slightly. A net 2 percent of firms reported lower bank loan needs, after a net 2 percent had reported higher needs in the previous quarter. The bank loan financing gap indicator stayed positive at 2, down from 3.
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Firms pointed to the economic outlook as the main constraint on external financing. A net 31 percent cited general conditions, up from 29 percent, while 9 percent cited their own prospects, slightly below 10 percent before. The survey covered 12,822 enterprises, 93 percent of them with fewer than 250 employees.
Source: European Central Bank
