Euro zone banks tightened access to credit during the second quarter as geopolitical uncertainty weighed on lending decisions, with lenders expecting borrowing conditions to become even stricter in the current quarter, according to the European Central Bank's (ECB) latest Bank Lending Survey, Reuters reported.
The survey found that while demand for business loans increased, banks adopted more cautious lending practices by tightening credit standards and rejecting a larger share of loan applications. The stricter lending conditions were particularly evident in sectors such as the automobile industry and energy-intensive manufacturing.
