07:04 AM EDT, 10/27/2026 (MT Newswires) -- Banks in the euro area tightened their credit standards for companies and consumer loans in the third quarter, while keeping those for mortgages "broadly unchanged," the European Central Bank said Tuesday. The ECB's October bank lending survey showed that demand for loans from companies declined in net terms amid rising interest rates and weaker demand for fixed investment. In terms of housing loans, demand fell sharply, weighed down by higher interest rates and deteriorating consumer confidence and housing market prospects. Meanwhile, consumer credit demand only "slightly" declined, reflecting interest rate changes, lower consumer confidence and muted spending on durables. Looking ahead, banks expect credit standards to further tighten for companies in the fourth quarter, and "significantly" tighten for housing loans and consumer credit.

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