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Euro area firms report tighter bank loan terms in Q2 2026

ECB’s SAFE shows loan rates jumped to a net 42% of firms reporting higher rates, and selling prices were expected to rise more slowly over the next 12 months.

Reported · Written up by our desk · Inflation

The European Central Bank reported results from its Survey on the Access to Finance of Enterprises, covering euro area firms in the second quarter of 2026, showing lending conditions tightened. In the survey, firms recorded a strong net increase in the interest rates charged on bank loans, with net 42% reporting higher rates, up from 26% in the prior quarter.

The ECB said firms also reported higher non-rate financing burdens. A net 31% of firms reported increases in other financing costs, down from 37% previously, and collateral requirements rose for a smaller share of firms, with net 10% reporting higher collateral needs, down from 14% in the first quarter.

Despite the stricter terms, the survey pointed to only a small increase in demand and mostly stable availability. A net 2% of firms reported higher bank loan financing needs, while availability was broadly unchanged at net -1% (versus net -3% in the first quarter), leaving the bank loan financing gap positive at 3%, up from 2% previously.

Looking ahead, fewer firms expected external financing availability to deteriorate, even as the general economic outlook remained the main constraint. ECB also said firms expected selling prices to rise by 3.2% over the next 12 months, alongside projections of 5.2% growth in non-labour input costs and easing wage expectations to 2.5%.

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