Recent ECB data shows loan rejection rates for firms and households now exceed pre-pandemic averages, with credit standards tightening more than banks previously expected.
Banks cite ongoing economic uncertainty, lower risk tolerance, and tariff-related trade worries as main reasons, particularly impacting export-oriented companies and consumer credit.
With the ECB discount rate at 2% and real borrowing costs still high, the central bank remains cautious, awaiting further survey data before considering policy changes.
Why are banks defying the ECB, making loans more expensive and harder to secure?
With a weak economy and falling inflation, why is the ECB so hesitant to cut rates?
Is the ECB's main policy tool—the interest rate—now broken for stimulating Europe's economy?
If rate cuts fail, what unconventional options does the ECB have left to spur growth?
Could recent energy price spikes force the ECB to consider a rate hike instead of a cut?
How does widespread job insecurity create a vicious cycle that paralyzes the Eurozone?