Financial News: Eurozone Loan Demand Rises In Q2: ECB Survey

Eurozone Loan Demand Rises In Q2: ECB Survey

07/22/2025 - 08:48:00 (RTTNews)

(RTTNews) - Eurozone banks reported an increase in demand for loans from firms and households, the latest bank lending survey results from the European Central Bank showed Tuesday. There was a slight increase in demand for loans from firms but overall demand remained weak. The marginal improvement was underpinned by falling interest rates, while global uncertainty and trade tensions acted as constraints.

At the same time, demand for housing loans continued to register substantial increase as declining interest rate boosted housing market prospects and consumer sentiment.

Demand for consumer credit and other lending to households rose only slightly with easing interest rates and other factors offsetting negative contributions from lower consumer confidence.

Regarding credit standards, the survey showed that lending standards for firms' loans remained broadly unchanged, while banks slightly tightened credit standards for housing loans. Standards for consumer credit was tightened more markedly.

The survey was conducted among 155 banks between June 13 and July 1.

For the ECB, the survey added to the view that there is no urgency for a July cut, ING economist Bert Colijn said.

Global uncertainty has not affected loan demand too much in the second quarter, which means that the outlook for investment is not currently deteriorating, Colijn added.

"The central bank can take the summer off and see how the economy, inflation and geopolitical drivers of both develop," the economist said.

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