Euro area firms report further tightening of bank loan conditions in Q3 2026

In the third quarter of 2026, euro area firms reported a net tightening of bank loan interest rates and other loan conditions, with 46% noting higher interest rates and 27% reporting increased financing costs and collateral requirements. Bank loan availability declined by 5%, widening the financing gap as firms' funding needs grew slower than reduced access. Large firms experienced tighter conditions more frequently than SMEs, and expectations for external financing availability dimmed over the next three months.