![]() ![]() In the fourth quarter, banks expect credit standards for enterprises to tighten further, reflecting concerns around the recovery as some sectors remain vulnerable as well as uncertainties around the prolongation of fiscal support measures.įirms’ demand for loans or drawing of credit lines declined in the third quarter of 2020, reflecting a decline in emergency liquidity needs relative to the previous quarter. This tightening was in line with banks’ expectations from the previous round and was mainly driven by banks’ risk perceptions, while banks’ cost of funds and balance sheet situation did not contribute to the tightening. The October BLS results show a tightening of credit standards on loans to firms in the third quarter of 2020 indicating credit risk considerations due to the coronavirus (COVID-19) pandemic. They look at the impact that the situation in financial markets has had on banks’ access to retail and wholesale funding, the impact of the ECB’s asset purchase programmes (APP and PEPP), the impact of the ECB’s negative deposit facility rate and the ECB’s two-tier system, and the impact of the TLTRO III on banks and their lending policy. Ī number of ad hoc questions were included in the October 2020 survey. ![]() In addition to results for the euro area as a whole, this report also contains results for the four largest euro area countries. A total of 143 banks were surveyed in this round, with a response rate of 100%. The survey was conducted between 21 September and 6 October 2020. The results reported in the October 2020 bank lending survey (BLS) relate to changes observed during the third quarter of 2020 and expectations for the fourth quarter of 2020. ![]()
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