According to the October 2025 bank lending survey (BLS), euro area banks reported a small net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the third quarter of 2025 (net percentage of banks of 4%; Chart 1). Banks reported unchanged credit standards for loans to households for house purchase (net percentage of 0%) and a moderate net tightening for consumer credit and other lending to households (net percentage of 5%). For firms, the net tightening in the third quarter followed broadly unchanged credit standards in the second quarter. This was unexpected as, in the previous survey round, banks had anticipated that credit standards would remain unchanged. Perceived risks to the economic outlook contributed to tighter credit standards. Banks also cited the current high level of geopolitical uncertainty and trade risks as reasons for discriminating across sectors or firms when issuing new loans, and several banks indicated intensified monitoring and analysis. The small net easing in credit standards for housing loans anticipated by euro area banks in the second quarter of 2025 did not materialise, while the tightening in credit standards for consumer credit was broadly in line with expectations. Risk perceptions of banks were the main drivers of the net tightening for consumer credit. For the fourth quarter of 2025, banks expect credit standards to remain broadly unchanged for firms, tighten slightly for housing loans and tighten further for consumer credit.
Banks’ overall terms and conditions – the actual terms and conditions agreed in loan contracts – remained broadly unchanged for loans to firms, while they eased for housing loans and consumer credit.