According to a survey by the ECB, the reasons are greater caution and the worsening economic outlook.
In view of the second wave of pandemics, companies found it a little more difficult to obtain credit in the fall. The banks in the euro zone tightened their standards for issuing loans to companies in the fourth quarter of 2020, as the European Central Bank (ECB) announced on Tuesday in a survey of 143 institutions from the currency area.
The reasons given by the financial institutions included a deterioration in the economic outlook and greater caution.
A tightening of credit standards is also expected for the first quarter of the new year. The demand for corporate loans in the currency area continued to decline in autumn. On the other hand, according to the survey, the banks expect it to pick up moderately again in the first quarter of the new year.
Four times a year, the ECB asks the euro zone financial institutions about their lending business. This time the survey took place between December 4th and 29th.
