Euro area banks expect a further net tightening of credit standards in the first quarter, albeit at a slower pace than in the fourth quarter of 2011, the latest bank lending survey from the European Central Bank showed.
Banks registered a net decline in the demand for loans to non-financial corporations in the last quarter of 2011, albeit at a slower pace than in the previous quarter.
For the first quarter of 2012, banks expect a sizeable drop in the net demand for housing loans, while the decline in net demand for consumer credit is expected to remain in the same range.
The survey was conducted between December 19 and January 9 on a sample of 124 euro area banks.
Source: RTT News