Eurozone banks tightening credit taps: ECB

Eurozone banks are tightening the criteria firms and households must meet to be granted loans, the European Central Bank said Tuesday, as policymakers weigh their response to stuttering growth.

Lenders upped their requirements of business borrowers and households seeking consumer credit between April and June, the quarterly poll of 144 banks showed.

Among the bloc’s largest economies, Germany, France and Italy saw tighter standards for business loans, while Spain’s remained flat and Netherlands-based banks reported easing.

Meanwhile standards for issuing mortgages remained on par with the first quarter in the eurozone average.

“Lower risk tolerance and, for loans to enterprises, higher risk perceptions, accompanied by higher cost of funds and balance sheet constraints, contributed to the tightening of credit standards across loan categories,” the ECB commented in a statement.