It has been reported that banks in the Eurozone tightened their loan terms in the first quarter with the increased risks as a result of the Russia-Ukraine war, and it is expected that the loan demand of companies will continue to increase in the second quarter of the year.
The ECB published the report covering the first quarter of the year on the results of the "Bank Credit Survey" in which banks participated in the Euro Area.
According to the report, the loan demand of companies in the Eurozone increased in the first quarter of the year.
In the statement made by the ECB regarding the report, it was stated that in the first quarter of 2022, the loan demands of companies increased with the need for working capital financing.
In the statement, "Banks expect the net increase in corporate loan demand to continue in the second quarter of 2022, but the net decrease in housing loan demand and consumer loan demand to remain generally stable," the statement said. it was said.
In the statement, which stated that banks in the Eurozone tightened the terms of loans to firms and houses in the first quarter, while slightly loosening the terms of consumer loans to households, this was due to increased risks as a result of the Russia-Ukraine war in the second quarter and the expectation of a less encouraging monetary policy from the ECB in the future. tightening will continue.
The ECB's "Bank Credit Survey", which enables the Eurosystem to learn about the credit conditions of banks in the Eurozone, is conducted 4 times a year. The last survey, made on 7-22 March, was conducted with the participation of 151 banks.
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