MNI BRIEF: Eurozone Bank Lending Conditions Remain Tight

Standards for loans or credit lines to eurozone enterprises tightened by less than expected in net terms in the first quarter of 2025, the ECB's Bank Lending Survey showed on Tuesday.

This followed renewed tightening reported in the fourth quarter of 2024 and was again driven by higher perceived risks related to general economic and firm-specific outlooks, the survey showed.

Banks reported a moderate easing of standards for loans to households for house purchase and a small further tightening for consumer credit. While competition was the main driving force behind the easing of standards for housing, risk tolerance also had a small impact, the data showed.

The data will provide further ammunition to the ECB doves pushing for a further cut in the policy rate on Thursday. (See MNI SOURCES: Tariffs Make ECB More Likely To Cut In April )