EMU banks

ECB night

Despite ECB’s Boost, Banks Tighten Credit Conditions Amid Fears About Debtor Solvency

This week the European Central Bank published the latest edition of its “Eurozone Bank Lending Survey” with 4Q20 data showing the need for continued generous support from the central bank. Despite the measures implemented by the ECB, the logical fear of banks about the solvency of their debtors explains why the conditions for accessing bank credit are tightening. In 4Q20, credit conditions for households eased, but not in the case of companies, considering that both areas were severely deteriorated in 3Q20.