RTTNews - Wednesday, the latest quarterly Bank Lending Survey from the European Central Bank showed that Eurozone banks tightened their credit standards in the second quarter. But the net percentage of banks that tightened credit standards for loans and credit lines extended to enterprises eased to 21% in the second quarter from 43% in the first quarter. Euro area banks see further lowering of the net tightening of credit standards in the third quarter.
In the meantime,the net percentage of banks recording a tightening credit standards for house purchases eased to 22% from 28% and that for consumer credit fell to 21% from 26%. Looking forward, banks expect the net tightening of credit standards applied to loans to households to weaken somewhat further in the third quarter of 2009.
Net demand for loans by enterprises eased in the second quarter, but the decrease was somewhat slower than in the first quarter. Meanwhile, net demand for housing loans turned positive in the second quarter and net consumer credit demand eased in the second quarter.
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