October 27, Fineko/abc.az. Eurozone lenders tightened credit standards further in the third quarter while reporting a decline in overall loan demand from businesses and households. According to the European Central Bank's (ECB) latest Bank Lending Survey, heightened risk perception, geopolitical uncertainties, and volatile energy markets remained the primary drivers behind stricter borrowing terms. Loan demand was heavily suppressed by high interest rates and subdued fixed investment from small and medium-sized enterprises (SMEs). The findings reinforce expectations for the ECB to maintain a cautious stance on further interest rate hikes.
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