Euro zone banks maintained relatively easy access to credit for firms in the second quarter with the backing of government guarantees, but they will likely tighten credit standards in the following three months, the European Central Bank said on Tuesday.
With a pandemic-induced crisis shutting much of the euro zone economy, firms rushed to tap bank credit to stay liquid and government guarantee schemes provided vital support for banks to keep cash flowing.
Credit standards on housing loans tightened in the second quarter and this trend is likely to continue in the third quarter, the ECB added based on a survey of 144 banks done between June 5 and 23, just as restrictive measures were being slowly lifted.
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