According to the April 2025 bank lending survey (BLS), which was conducted between 10 and 25 March 2025, euro area banks reported a small further net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the first quarter of 2025 (a net 3% of banks; Chart 1). Banks also reported a moderate easing of credit standards for loans toconsumer credit and other households for house purchase (a net -7% of banks), whereas credit standards for lending to households tightened slightly further (a net 3% of banks). For loans to firms, the net tightening followed the renewed tightening of credit standards seen in the previous quarter and was lower than banks had expected. It was again driven by higher perceived risks related to the economic outlook and to the industry and firm-specific situations. For loans to households for house purchase, banks eased credit standards, after keeping them broadly unchanged in the previous quarter and despite having expected a small tightening. The easing was mostly driven by competition from other banks. Credit standards tightened slightly further for consumer credit, mainly owing to higher perceived risks. For the second quarter of 2025, banks expect a further net tightening of credit standards across all three loan segments.
Banks’ overall terms and conditions – the actual terms and conditions agreed in loan contracts – eased for loans to firms and for housing loans, while they tightened for consumer credit. Lower lending rates and narrower margins on average loans eased terms and conditions across all segments. There was a small tightening impact from stricter collateral requirements for loans to firms and by loan maturity and size for consumer credit, while margins on riskier loans narrowed for housing loans.