The euro area bank lending survey . 4th quarter of 2013, January 2014.
Date: 2015-04-30
Institutions: European Central Bank
Subjects: European Central Bank, bank, economic analysis, euro area, loan, serial publication

tHE EURO AREA
BANK LENDING SURVEY

4tH QUARtER OF 2013

In 2014 all ECB 
publications 
feature a motif 
taken from 
the €20 banknote.

JANUARY 2014

© European Central Bank, 2014

Address   
Postal address 
Telephone 
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Kaiserstrasse 29, 60311 Frankfurt am Main, Germany
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ISSN  
EU Catalogue No   

1830-5989 (online)
QB-BA-14-001-EN-N (online)

 
 
 
 
 
 
 
 
The results reported in the January 2014 bank lending survey (BLS) relate to changes during 

the fourth quarter of 2013 and expectations of changes in the first quarter of 2014. The survey 

was conducted between 13 December 2013 and 9 January 2014. With 133 banks participating 

in  the  survey,  the  response  rate  reached  100%.  Four  ad  hoc  questions  were  included  in  the 

questionnaire  for  the  January  2014  survey  round.  The  first  ad  hoc  question  addresses  the 

impact of the financial crisis on the access to retail and wholesale funding. The second ad hoc 

question refers to the impact of the sovereign debt crisis on banks’ funding conditions, on credit 

standards and on credit margins, while the third and fourth questions refer to the likely impact 

of ongoing regulatory or supervisory changes on banks’ lending policies. 

1  OVERVIEW OF THE RESULTS 
Overall, the January 2014 BLS provides further indications of stabilisation in credit conditions 

for firms and households, in the context of persistently weak loan demand. In the fourth quarter 

of 2013, the net percentage of banks reporting a tightening of credit standards (henceforth “net 

tightening”)  applied  by  euro  area  banks  to  loans  to  non-financial  corporations  continued  its 

gradual  reduction  (2%,  from  5%  in  the  previous  quarter).  The  net  percentage  of  banks  that 

tightened credit standards for loans to households for house purchase became slightly negative 

(-1%, from 3%). For consumer credit, the net tightening remained broadly unchanged (at 2%). 

Across  all  loan  categories,  the  net  tightening  of  credit  standards  in  the  fourth  quarter  of  2013 

remained well below historical averages calculated over the period since the start of the survey 

in  2003.  The  contribution  of  borrowers’  risk  and  of  the  general  economic  outlook  to  the 

tightening  of  bank  lending  policies  decreased  further,  becoming  almost  nil  and  thus  reaching 

levels close to those observed at the beginning of the global financial crisis. Factors related to 

banks’  liquidity  and  market  funding  conditions  contributed  to  a  small  net  easing  for  loans  to 

non-financial  corporations  and  to  a  small  net  tightening  for  loans  to  households.  For  the  first 

quarter of 2014, euro area banks expect a further reduction in the net tightening on loans to non-

financial corporations – to reach nil – and a more intense net easing for loans to households. 

In  the  last  quarter  of  2013,  the  demand  for  credit  remained  weak  across  all  loan  categories. 

However,  the  net  decline  in  demand  for  loans  to  non-financial  corporations  slowed  further  (-

10%, from -12% in the previous quarter), thus approaching its historical average. This reflected 

the marked decline in the contractive impact of financing needs related to fixed investments (-

9%,  from  -22%),  while  the  contribution  to  demand  of  other  financing  needs,  including  those 

related to inventories and working capital, faded away (1%, from 6%). For housing loans, banks 

indicated a modest net decline in demand (-3%, from 5% in the third quarter of 2013), broadly 

The euro area bank lending survey / January 2014 

1 

 
 
in line with the historical average. The net demand for consumer credit slightly decreased (-1%, 

from 1%), but remained above its historical average. Looking ahead, banks expect, in net terms, 

an increase in demand across all loan categories for the first quarter of 2014. 

Developments in access to funding for euro area banks were heterogeneous across instruments. 

Euro area banks reported a net deterioration for retail funding and money market instruments, 

interrupting  the  trend  observed  in  previous  quarters.  Conditions  for  the  issuance  of  debt 

securities improved, as in previous quarters. For the first quarter of 2014 banks expect a further 

net deterioration in retail funding and an improvement for the other categories. 

The  replies  to  the  January  2014  survey  indicated  that  factors  related  to  the  sovereign  debt 

tensions  had  contributed  on  average  to  an  easing  of  banks’  funding  conditions  in  the  fourth 

quarter of 2013. The impact of the sovereign debt crisis on banks’ credit standards had remained 

muted.  In  addition,  euro  area  banks  reported  that  the  sovereign  debt  crisis  had  had  a  neutral 

impact  on  the  margins  applied  to  loans  to  enterprises,  while  it  had  contributed  to  a  slight 

narrowing of margins for housing loans and consumer credit. 

Banks’ replies indicated that, in connection with the new regulatory and supervisory action, they 

had reduced their risk-weighted assets during the second half of 2013. The net contraction had 

been particularly significant for riskier loans. Banks also reported, in net terms, a strengthening 

of  their  capital  position  both  through  capital  issuance  and  retained  earnings.  Respondents  did 

not  report  any  significant  effect  of  regulatory  and  supervisory  action  on  funding  conditions. 

Finally, banks indicated that regulatory and supervisory action had induced in the second half of 

2013 a net tightening of banks’ credit standards which was smaller than in the first part of the 

year. For the euro area as a whole, these indicators were broadly unchanged compared both with 

those  reported  in  the  July  2013  round  for  the  first  half  of  the  year  and  with  what  banks  had 

expected at the time for the second half of 2013. 

The euro area bank lending survey / January 2014 

2 

 
 
Box 1 

GENERAL NOTES  

The bank lending survey is addressed to senior loan officers of a representative sample of euro 
area banks.1 Its main purpose is to enhance the understanding of bank lending behaviour in the 
euro area.2 

The questions distinguish between three categories of loan: loans or credit lines to enterprises; 

loans to households for house purchase; and consumer credit and other lending to households. 

For all three categories, questions are asked on credit standards for approving loans; credit terms 

and conditions; and credit demand and the factors affecting it. 

The survey questions are phrased in terms of changes over the past three months (in this case in 

the fourth quarter of 2013) or expectations of changes over the next three months (i.e. in the first 

quarter of 2014). 

The responses to questions related to credit standards are analysed in this report by focusing on 

the difference (“net percentage”) between the share of banks reporting that credit standards have 

been  tightened  and  the  share  of  banks  reporting  that  they  have  been  eased.  A  positive  net 

percentage  indicates  that  a  larger  proportion  of  banks  has  tightened  credit  standards  (“net 

tightening”), whereas a negative net percentage indicates that a larger proportion of banks has 

eased credit standards (“net easing”). Likewise, the term “net demand” refers to the difference 

between  the  share  of  banks  reporting  an  increase  in  loan  demand  and  the  share  of  banks 

reporting  a  decline.  Net  demand  will  therefore  be  positive  if  a  larger  proportion  of  banks  has 

reported  an  increase  in  loan  demand,  whereas  negative  net  demand  indicates  that  a  larger 

proportion of banks has reported a decline in loan demand. 

In order to describe the developments of survey replies over time, the report refers to changes in 

the “net tightening” or “net easing” of credit standards from one survey round to another. For 

example, a lower net percentage of banks tightening their credit standards between two survey 

waves would be referred to as a “decline in net tightening”. Similarly, higher net percentages of 

banks indicating a decline in loan demand between two survey waves would be referred to as a 

“more pronounced net decline in demand”. 

1   The  sample  group  of  banks  participating  in  the  survey  comprises  133  banks,  representing  all  of  the  euro  area 
countries,  and  takes  into  account  the  characteristics  of  their  respective  national  banking  structures.  Since  the 
banks in the sample group differ considerably in size, the survey results are weighted according to the national 
shares in total outstanding euro area lending to euro area residents.  

2   For  more  detailed  information  on  the  bank  lending  survey,  see  the  ECB  press  release  of  21  November  2002 
entitled “Bank lending survey for the euro area”, the article entitled “A bank lending survey for the euro area” in 
Monthly Bulletin, ECB, April 2003, and J. Berg et al., “The bank lending survey for the euro area”, Occasional 
Paper Series, No 23, ECB, 2005. 

The euro area bank lending survey / January 2014 

3 

 
                                                      
In  addition,  an  alternative  measure  of  the  responses  to  questions  related  to  changes  in  credit 

standards  and  net  demand  is  included.  This  measure  is  the  weighted  difference  (“diffusion 

index”) between the share of banks reporting that credit standards have been tightened and the 

share of banks reporting that they have been eased. Likewise, regarding the demand for loans, 

the  diffusion  index  refers  to  the  weighted  difference  between  the  share  of  banks  reporting  an 

increase  in  loan  demand  and  the  share  of  banks  reporting  a  decline.  The  diffusion  index  is 

constructed in the following way: lenders who have answered “considerably” are given a weight 

twice  as  high  (score  of  1)  as  lenders  having  answered  “somewhat”  (score  of  0.5).  The 

interpretation  of  the  diffusion  indices  follows  the  same  logic  as  the  interpretation  of  net 

percentages. 

Detailed tables and charts on the responses are provided in Annex 1 for the individual questions 

and in Annex 2 for the ad hoc questions. 

A copy of the questionnaire can be found at 

http://www.ecb.europa.eu/stats/money/surveys/lend/html/index.en.html. 

2  DEVELOPMENTS IN CREDIT STANDARDS AND 

NET DEMAND FOR LOANS IN THE EURO AREA  
ENTERPRISES  

2.1 

2.1.1  THE NET TIGHTENING OF CREDIT STANDARDS FOR LOANS TO FIRMS 

CONTINUED ITS GRADUAL DECLINE IN THE FOURTH QUARTER OF 2013  

In  the  fourth  quarter  of  2013,  the  net  tightening  of  banks’  credit  standards  for  loans  to  non-

financial corporations continued its gradual decline (2%, from 5% in the previous quarter; see 

Chart 1). This is below its historical average since the start of the survey in 2003 (15%). The 

reported net tightening contrasts with the net easing banks had expected for the fourth quarter of 

2013 in the previous round of the survey, in October. 

Concerning  developments  by  firm  size,  the  reported  decline  in  the  net  tightening  of  lending 

criteria for firms was more intense for loans to small and medium-sized enterprises, for which 

banks  reported  a  slight  net  easing  for  the  first  time  since  mid-2007  (-3%,  from  3%  in  the 

previous  quarter).  Regarding  loan  maturity,  the  net  tightening  of  credit  standards  remained 

unchanged  for  long-term  loans  (at  5%),  but  declined  for  short-term  ones,  becoming  slightly 

negative (-1%, from 3%). 

The euro area bank lending survey / January 2014 

4 

 
 
Looking  ahead  to  the  first  quarter  of  2014,  euro  area  banks  expect,  in  net  terms,  the  net 

tightening of credit standards for loans to non-financial corporations to come to a complete halt 

(0%; see Chart 1). 

Chart  1    Changes  in  credit  standards  applied  to  the  approval  of  loans  or  credit 
lines to enterprises 

(net percentages of banks contributing to tightening credit standards) 

actual

expected

50

40

30

20

10

0

‐10

FACTORS CONTRIBUTING TO THE TIGHTENING OF 
CREDIT STANDARDS
Bank's 
liquidity 
position

Access to 
market 
financing

Expectations 
general 
economic 
activity

Costs 
related to 
bank's 
capital 
position

50

40

30

20

10

0

‐10

1
Q
2
1

3
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2
1

1
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3
1

3
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1

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1

Notes: “Actual” values are changes that have occurred, while “expected” values are changes anticipated by banks. Net percentages 
are defined as the difference between the sum of the percentages of banks responding “tightened considerably” and “tightened 
somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased considerably”. The net percentages 
for responses to questions related to the factors are defined as the difference between the percentage of banks reporting that the 
given factor contributed to a tightening and the percentage reporting that it contributed to an easing. 

Turning to the factors explaining developments in lending policies, on average, euro area banks 

reported that the factors related to cost of funds and balance sheet constraints had contributed to 

a  slight  net  easing  of  credit  standards  for  loans  to  enterprises  in  the  fourth  quarter  of  2013  (-

2%), broadly unchanged compared with the previous quarter. More specifically, the contribution 

of  banks’  capital  positions  to  the  net  tightening  had  become  nil  (from  3%  in  the  previous 

quarter), while the impact  of their liquidity  positions on net easing had declined (-5%, from -

7%).  

After having considerably dropped in the third quarter of 2013, the impact of risk perceptions 

on  the  net  tightening  of  credit  standards  for  euro  area  enterprises  declined  again  in  the  last 

The euro area bank lending survey / January 2014 

5 

 
 
 
 
quarter of the year (2%, from 6%), reaching levels close to those observed at the beginning of 

the  global  financial  crisis.  All  three  underlying  components  contributed  to  this  decline:  a 

reduction in the perceived risk of the collateral demanded (1%, from 4%), as well as banks’ less 

pessimistic expectations regarding general economic activity (1%, from 4%) and regarding the 

industry or firm-specific outlook (4%, from 10%). 

Chart  2    Changes  in  terms  and  conditions  for  approving  loans  or  credit  lines  to 
enterprises 

(net percentages of banks reporting a tightening of terms and conditions) 

Margins on 
average loans

Margins on 
riskier loans

Collateral 
requirements

Loan 
covenants

60

50

40

30

20

10

0

‐10

1
Q
2
1

3
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2
1

1
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1

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1

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1

1
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1

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1

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1

3
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1

Note: See the notes to Chart 1. 

Finally,  on  average,  the  small  contribution  of  competitive  pressures  to  net  easing  observed  in 

the last survey round in October continued over the fourth quarter of 2013 (-3%, from -4%). 

The development in the net tightening of credit standards for loans to enterprises in the fourth 

quarter  of  2013  was  associated  with  a  further  net  narrowing  of  margins  on  average  loans  to 

enterprises (-7%, from -9% in the previous quarter) and a smaller net widening of margins on 

riskier  loans  (6%,  from  8%;  see  Chart  2).  In  addition,  euro  area  banks  reported,  in  net  terms, 

that the net tightening of the size of loans had come to a halt in the fourth quarter of 2013 (0%, 

from 3%). The slight degree of tightening of  collateral requirements had remained unchanged 

(at  2%),  while  the  corresponding  indicators  for  maturity,  loan  covenants  and  non-interest  rate 

charges  had  remained  at  levels  close  to  zero.  Overall,  these  price  developments  suggest  an 

The euro area bank lending survey / January 2014 

6 

 
 
 
 
easing  of  cost  conditions  for  credit  to  enterprises,  although  in  a  context  of  persisting 

discrimination across risk categories. 

2.1.2  THE NET DECLINE IN DEMAND FOR LOANS TO ENTERPRISES MODERATED 

FURTHER 

The net decline in the demand for loans to non-financial corporations slowed down in the fourth 

quarter  of  2013  (-10%,  from  -12%  in  the  third  quarter  of  2013; see  Chart  3),  thereby  moving 

closer to its historical average since the start of the survey (-8%).  

For the first quarter of 2014, euro area banks expect a net increase in the demand for loans to 

enterprises (10% on balance). 

Chart 3   Changes in demand for loans or credit lines to enterprises 

(net percentages of banks reporting a positive contribution to demand) 

30

20

10

0

‐10

‐20

‐30

‐40

actual

expected

FACTORS CONTRIBUTING TO INCREASING DEMAND

Fixed 
investments

Inventories 
and working 
capital

Internal 
financing

Issuance of 
debt 
securities

30

20

10

0

‐10

‐20

‐30

‐40

1
Q
2
1

3
Q
2
1

1
Q
3
1

3
Q
3
1

1
Q
4
1

2
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2
1

4
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1

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3
1

4
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3
1

Notes: “Actual” values are changes that have occurred, while “expected” values are changes anticipated by banks. Net percentages 
for the questions on demand for loans are defined as the difference between the sum of the percentages of banks responding 
“increased considerably” and “increased somewhat” and the sum of the percentages of banks responding “decreased somewhat” and 
“decreased considerably”. The net percentages for responses to questions related to each factor are defined as the difference between 
the percentage of banks reporting that the given factor contributed to increasing demand and the percentage reporting that it 
contributed to decreasing demand. 

According to the surveyed banks, the contractive impact on corporate loan demand of financial 

needs related to fixed investments further and significantly moderated (-9%, from -22% in the 

third quarter of 2013; see Chart 3). This development was only partly compensated for by that 

The euro area bank lending survey / January 2014 

7 

 
 
 
 
 
of  the  financing  needs  related  to  inventories  and  working  capital,  the  slightly  expansive 

contribution  of  which  became  contractive  (-7%,  from  2%).  Regarding  the  use  of  alternative 

finance,  euro  area  banks  continued  to  report  a  net  negative  contribution  of  internal  financing  

(-5%, from -7%) and of debt security issuance (-9%, from -7%). 

2.2 

HOUSEHOLDS 

2.2.1  THE TIGHTENING TREND OF CREDIT STANDARDS FOR LOANS TO HOUSEHOLDS 

FOR HOUSE PURCHASE CAME TO A HALT 

The  net  percentage  of  banks  that  tightened  credit  standards  for  loans  to  households  for  house 

purchase became slightly negative (-1%, from 3% in the third quarter of 2013; see Chart 4). 

Looking  ahead,  euro  area  banks  expect  –  in  net  terms  –  a  further  and  wider  net  easing  in  the 

criteria applied to housing loans (-4%, see Chart 4). In line with average patterns observed since 

the  survey’s  inception,  the  net  easing  reported  in  the  fourth  quarter  of  2013  was  close  to  the 

level banks had expected at the time of the previous survey round. 

As  in  the  previous  quarter,  banks’  cost  of  funds  and  balance  sheet  constraints  contributed 

marginally to the net tightening of credit standards for housing loans (3%, from 1% in the third 

quarter of 2013; see Chart 4), in contrast with their slight contribution to the net easing of loans 

to  non-financial  corporations.  The  contribution  of  the  general  economic  outlook  and  housing 

market  prospects  to  the  net  tightening of  credit  standards  for  housing  loans  decreased  further, 

largely vanishing (0% and 1%, from 2% and 8% respectively). 

For  most  price  and  non-price  terms  and  conditions,  less  tightening  –  or  even  easing  –  was 

reported  in  the  last  quarter  of  2013.  Euro  area  banks  reported,  in  net  terms,  a  narrowing  of 

margins on average housing loans (-10%, from -7% in the third quarter of 2013), while the net 

tightening of margins on riskier loans came to a halt (0%, from 4%). Responses regarding non-

price terms and conditions pointed to a moderation in the net tightening for loan maturity (1%, 

from 4%), while in the case of the loan-to-value ratio banks reported a slight net easing for the 

first time since 2006 (-3%, from 6%). 

The euro area bank lending survey / January 2014 

8 

 
 
 
Chart  4    Changes  in  credit  standards  applied  to  the  approval  of  loans  to 
households for house purchase 

 (net percentages of banks reporting a contribution to tightening credit standards) 

40

30

20

10

0

‐10

actual

expected

FACTORS  CONTRIBUTING TO THE TIGHTENING OF 
CREDIT STANDARDS

Costs of 
funds  and 
balance 
sheet 
constraints

Competition 
from  other 
banks

Expectations 
general 
economic 
activity

Housing 
market 
prospects

40

30

20

10

0

‐10

1
Q
2
1

3
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2
1

1
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3
1

3
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3
1

1
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1

Note: See the notes to Chart 1. 

2.2.2  MODERATE NET DECLINE IN DEMAND FOR HOUSING LOANS  

In  the  last  quarter  of  2013,  banks  indicated  a  small  net  decline  in  demand  for  loans  to 

households  for  house  purchase  (to  -3%,  from  5%  in  the  third  quarter  of  2013;  see  Chart  5), 

thereby reversing the shift to positive net change observed in the previous quarter and bringing 

the net change in housing loan demand to a level close to its historical average (-4%). 

Regarding  factors  affecting  demand,  the  small  positive  net  contribution  of  housing  market 

prospects observed in the third quarter of 2013 faded away (1%, from 3%; see Chart 5). At the 

same  time,  the  negative  contribution  from  factors  –  other  than  housing  market  prospects  – 

influencing financing needs slightly diminished (-3%, from -5%). Looking forward, for the first 

quarter of 2014, euro area banks expect a strong net increase in demand for housing loans (16%; 

see Chart 5). 

The euro area bank lending survey / January 2014 

9 

 
 
 
 
Chart 5  Changes in demand for loans to households for house purchase   

(net percentages of banks reporting a positive contribution to demand) 

30

20

10

0

‐10

‐20

‐30

‐40

‐50

actual

expected

FACTORS CONTRIBUTING TO INCREASING DEMAND

Housing 
market 
prospects

Consumer 
confidence

Household 
savings

Other 
sources of 
finance

30

20

10

0

‐10

‐20

‐30

‐40

‐50

1
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2
1

3
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1

Note: See the notes to Chart 3. 

2.2.3  MARGINAL NET TIGHTENING OF CREDIT STANDARDS FOR CONSUMER CREDIT 

For consumer credit, in the fourth quarter of 2013 the marginal net tightening remained broadly 

unchanged (at 2%; see Chart 6), at a level well below the historical average (7%). The slight net 

tightening  effect  on  the  supply  of  these  loans  exerted  by  cost  of  funds  and  balance  sheet 

constraints and, on average, by factors related to risk perception remained largely stable (each at 

1%). Competitive pressures continued to contribute to a marginal net easing (-2%).  

Margins on average loans narrowed slightly (-2%, from 0% in the third quarter of 2013), and 

those on riskier loans continued to narrow, but to a lesser extent than previously (1%, from 3%). 

Concerning non-price conditions, the net variation of maturity diminished (-1%, from 2%). 

Looking  ahead,  euro  area  banks  expect  a  small  net  easing  of  credit  standards  for  consumer 

credit in the first quarter of 2014 (-3%; see Chart 6). 

The euro area bank lending survey / January 2014 

10 

 
 
 
 
 
Chart  6    Changes  in  credit  standards  applied  to  the  approval  of  consumer  credit 
and other lending to households 

(net percentages of banks contributing to tightening credit standards) 

30

20

10

0

‐10

actual

expected

FACTORS  CONTRIBUTING TO THE TIGHTENING OF 
CREDIT STANDARDS

Costs of 
funds  and 
balance 
sheet 
constraints

Competit 
from  other 
banks

Expectations 
general 
economic 
activity

Creditworthin
ess of 
consumer

30

20

10

0

‐10

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4
Q
3
1

2
Q
2
1

4
Q
2
1

2
Q
3
1

4
Q
3
1

2
Q
2
1

4
Q
2
1

2
Q
3
1

4
Q
3
1

2
Q
2
1

4
Q
2
1

2
Q
3
1

4
Q
3
1

Note: See the notes to Chart 1. 

Net  demand  for  consumer  credit  remained  broadly  unchanged.  According  to  the  banks 

surveyed, the change, in net terms, in demand for consumer credit was basically nil (-1%, from 

1%), a level which is above its historical average (-5%). Among the main factors underlying the 

demand  for  consumer  credit,  the  most  notable  development  is  the  improvement  in  consumer 

confidence. 

3  AD HOC QUESTIONS  
3.1.1  DEVELOPMENTS IN ACCESS TO FUNDING FOR EURO AREA BANKS WERE 

HETEROGENEOUS ACROSS INSTRUMENTS  

As  in  previous  surveys,  the  January  2014  survey  questionnaire  included  a  question  aimed  at 

assessing  the  extent  to  which  financial  market  tensions  affected  banks’  access  to  retail  and 

wholesale funding.   

For  the  fourth  quarter  of  2013,  euro  area  banks  reported  a  net  deterioration  for  retail  funding 

(2%,  from  -3%,  on  average  for  deposits  and  other  retail  funding  instruments)  and  for  money 

The euro area bank lending survey / January 2014 

11 

 
 
 
 
 
markets  instruments  (6%,  from  -3%),  interrupting  the  trend  observed  in  the  previous  quarters 

(see Chart 7). Conditions for the issuance of debt securities improved, as in previous quarters (-

5%, from -6%), as did those for securitisation (-7%, from -8%). 

A  net  deterioration  is  expected  for  retail  funding  in  the  first  quarter  of  2014,  while  an 

improvement is expected overall for wholesale funding instruments. 

Chart 7  Banks’ assessment of funding conditions and the ability to transfer credit 
risk off balance sheet 

(net percentages of banks reporting deteriorated market access) 

n
o
i
t
a
r
o
i
r
e
t
e
d
t
e
n

g
n
i
s
a
e
t
e
n

15

10

5

0

-5

-10

-15

-20

Q2 2013

Q3 2013

Q4 2013

Q1 2014 (expected)

Retail funding

Wholesale funding 

Short-term
deposits

Long-term
deposits and
other retail
funding
instruments

Very short-
term money
market

Short-term
money market

Short-term
debt securities

Medium to
long-term
debt securities

Securitisation
of corporate
loans

Securitisation
of loans for
house
purchase

Ability to
transfer credit
risk off the
balance sheet

Note: The net percentages are defined as the difference between the sum of the percentages for “deteriorated considerably” and 
“deteriorated somewhat” and the sum of the percentages for “eased somewhat” and “eased considerably”.  

3.1.2  DECLINING SOVEREIGN DEBT TENSIONS CONTRIBUTED TO AN EASING OF 

BANKS’ FUNDING CONDITIONS AND OF CREDIT STANDARDS FOR LOANS TO 
HOUSEHOLDS 

As  in  the  previous  survey  round,  the  January  2014  survey  questionnaire  included  a  question 

which addressed the specific impact of the sovereign debt crisis on banks’ funding conditions, 

lending  policies  and  credit  margins  over  the  past  three  months.  In  principle,  bank  funding 

conditions  can  be  primarily  affected  through  two  direct  channels.  First,  direct  exposure  to 

sovereign debt may weaken banks’ balance sheets, increase their riskiness as counterparties and, 

in turn, make funding more costly and more difficult to obtain. Second, higher sovereign debt 

risk  reduces  the  value  of  sovereign  collateral  that  banks  can  use  to  raise  wholesale  funding. 

The euro area bank lending survey / January 2014 

12 

 
 
 
 
 
Beyond  this,  other  effects  may  link  sovereign  market  tensions  to  bank  funding  conditions. 

Notably, the weaker financial positions of governments have lowered the funding benefits that 

banks  derive  from  implicit  or  explicit  government  guarantees.  Financial  contagion  from 

sovereign to sovereign or from sovereign to banks may also be in play. 

In a context of further normalisation of government bond market conditions, the replies to the 

January 2014 survey indicated that factors related to sovereign debt tensions had contributed on 

average  to  a  net  easing  of  banks’  funding  conditions  in  the  fourth  quarter  of  2013  (-4%  on 

average across the three channels, from -3% in the third quarter of 2013; see Chart 8). 

In  detail,  on  balance,  5%  and  7%  respectively  of  euro  area  banks  reported  that  their  direct 

exposure to sovereign debt and the value of their sovereign collateral had contributed to a net 

easing  in  funding  conditions,  almost  unchanged  compared  with  the  previous  quarter,  whereas 

the net tightening impact of “other effects” had faded away. 

The impact of the sovereign debt crisis on banks’ credit standards remained muted (see Chart 8). 

Changes  in  the  value  of  the  sovereign  collateral  contributed  to  a  marginal  net  tightening  of 

lending criteria for loans to non-financial corporations (2%, from 1%). The direct exposure to 

government bonds also slightly contributed to a restriction of the supply of credit to firms (2%, 

from 1%) and had the opposite effect on loans to households (-2%, as in the previous quarter, 

for both housing loans and consumer credit). 

In addition, euro area banks reported that the sovereign debt crisis had had a neutral impact on 

the  margins  applied  to  loans  to  enterprises,  while  it  had  contributed  to  a  slight  narrowing  of 

margins  for  housing  loans  and  consumer  credit,  mainly  through  the  benefits  brought  by  the 

changes in government bond market prices for the direct exposure of banks in these securities 

(see Chart 8). 

The euro area bank lending survey / January 2014 

13 

 
 
Chart  8    Impact  of  the  sovereign  debt  crisis  on  banks’  funding  conditions,  credit 
standards and lending margins 

(net  percentages  of  banks  reporting  a  deterioration  of  funding  conditions,  a  tightening  of  credit 
standards or a widening of lending margins) 

13Q1

13Q2

13Q3

13Q4

/
n
o
i
t
a
r
o
i
r
e
t
e
d
t
e
n

g
n
i
s
a
e
t
e
n

g
n

i

n
e
t
h
g
i
t

t
e
n

6

4

2

0

‐2

‐4

‐6

‐8

e
r
u
s
o
p
x
e
t
c
e
r
i
D

i

t
b
e
d
n
g
e
r
e
v
o
s
o
t

f
o
e
u
a
V

l

l

a
r
e
t
a

l
l

i

o
c
n
g
e
r
e
v
o
s

s
t
c
e
f
f
e
r
e
h
t
O

s
t
c
e
f
f
e
r
e
h
t
O

e
r
u
s
o
p
x
e
t
c
e
r
i
D

i

t
b
e
d
n
g
e
r
e
v
o
s
o
t

f
o
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u
a
V

l

l

a
r
e
t
a

l
l

i

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c
n
g
e
r
e
v
o
s

s
t
c
e
f
f
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r
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h
t
O

e
r
u
s
o
p
x
e
t
c
e
r
i
D

i

t
b
e
d
n
g
e
r
e
v
o
s
o
t

f
o
e
u
a
V

l

l

a
r
e
t
a

l
l

i

o
c
n
g
e
r
e
v
o
s

e
r
u
s
o
p
x
e
t
c
e
r
i
D

i

t
b
e
d
n
g
e
r
e
v
o
s
o
t

f
o
e
u
a
V

l

l

a
r
e
t
a

l
l

i

o
c
n
g
e
r
e
v
o
s

s
t
c
e
f
f
e
r
e
h
t
O

Loans or credit lines to
enterprises

Loans to households for
house purchase

Consumer credit and
other lending to
households

Impact on your bank's
funding conditions

Impact on your bank's credit standards

13Q1

13Q2

13Q3

13Q4

6
5
4
3
2
1
0
‐1
‐2
‐3
‐4

i

g
n
n
e
d
w

i

t
e
n

i

g
n
w
o
r
r
a
n
t
e
n

e
r
u
s
o
p
x
e
t
c
e
r
i
D

t
b
e
d
n
g

i

e
r
e
v
o
s
o
t

f
o
e
u
a
V

l

l

a
r
e
t
a

l
l

o
c
n
g

i

e
r
e
v
o
s

s
t
c
e
f
f
e

r
e
h
t
O

e
r
u
s
o
p
x
e
t
c
e
r
i
D

t
b
e
d
n
g

i

e
r
e
v
o
s
o
t

f
o
e
u
a
V

l

l

a
r
e
t
a

l
l

o
c
n
g

i

e
r
e
v
o
s

s
t
c
e
f
f
e

r
e
h
t
O

e
r
u
s
o
p
x
e
t
c
e
r
i
D

t
b
e
d
n
g

i

e
r
e
v
o
s
o
t

f
o
e
u
a
V

l

l

a
r
e
t
a

l
l

o
c
n
g

i

e
r
e
v
o
s

s
t
c
e
f
f
e

r
e
h
t
O

Loans or credit lines to
enterprises

Loans to households for house
purchase

Consumer credit and other
lending to households

Impact on your bank's credit margins

Note: The net percentages are defined as the difference between the sum of the percentages for “contributed to a deterioration of 
funding conditions/tightening of credit standards/widening of credit margins considerably” and “somewhat” and the sum of the 
percentages for “contributed to an easing of funding conditions/easing of credit standards/narrowing of lending margins somewhat” 
and “considerably”. 

3.1.3  CONTINUING ADJUSTMENT TO REGULATORY AND SUPERVISORY ACTION BY 

SHEDDING RISK-WEIGHTED ASSETS AND BY INCREASING CAPITAL POSITIONS  

The  January  2014  survey  questionnaire  included  two  biannual  ad  hoc  questions  aimed  at 

assessing the extent to which new regulatory requirements affected banks’ lending policies, via 

The euro area bank lending survey / January 2014 

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
the potential impact on their capital position and the credit standards that they apply to loans. 

These  new  requirements  cover  the  regulation  set  out  in  the  “CRR/CRD  IV”  agreement, 

additional  measures  of  the  European  Banking  Authority,  and  any  other  specific  national 

regulations concerning banks’ capital ratios that have recently been approved or are expected to 

be  approved  in  the  near  future.  Compared  with  the  version  used  in  the  July  2013  round,  the 

wording of the question was amended so that banks, in their reply, would also take into account 

any new supervisory action, such as the forthcoming comprehensive assessment, with possible 

implications  for  lending  supply.  In  addition,  banks  were  also  asked  to  indicate  the  effects  on 

funding conditions. 

Banks’ replies indicated that, in connection with regulatory and supervisory action, their risk-

weighted assets were reduced during the second half of 2013 (-23%, from -24%; see Chart 9). 

The  net  contraction  concerned  both  the  average  loans  (-15%,  from  -16%)  and,  to  a  greater 

extent,  the  riskier  loans  (-29%,  from  -28%).  Banks  also  reported  a  net  strengthening  of  their 

capital position (20%, from 23%) both through retained earnings (22%, from 21%) and capital 

issuance  (11%,  unchanged).  Banks  did  not  report  any  significant  effect  of  regulatory  and 

supervisory action on funding conditions. 

The euro area bank lending survey / January 2014 

15 

 
 
Chart  9    Impact  of  REGULATORY  AND  SUPERVISORY  ACTION  ON  BANKS’ 
RISK-WEIGHTED  ASSETS  ,  CAPITAL  POSITION  AND  BANKS’  FUNDING 
CONDITIONS 

(net percentages of banks) 

Note: “RWA” stands for risk-weighted assets, “CP” for capital position and “BFC” for banks’ funding conditions. For the questions 
on RWA and CP, the net percentages are defined as the difference between the sum of the percentages for “increase considerably” 
and “increase somewhat” and the sum of the percentages for “decreased somewhat” and “decreased considerably”. For the question 
on BFC, the net percentages are defined as the difference between the sum of the percentages for “experienced a considerable 
tightening” and “experienced a moderate tightening” and the sum of the percentages for “experienced a moderate easing” and 
“experienced a considerable easing”. Figures for H1 2014 are expectations.  

At  the  euro  area  level,  the  intensity  of  the  reaction  to  regulatory  pressure  remained  broadly 

unchanged compared both with what was reported in July 2013 for the first half of last year and 

with what banks expected at that moment for the second half of the year.  

Banks indicated that regulatory and supervisory action had induced in the second half of 2013 a 

net tightening of banks’ credit standards applied to loans to firms, which was smaller than in the 

first part of the year (see Chart 10). This holds true for loans to both SMEs (5%, from 9%) and 

larger companies (8%, from 17%). The contractive impact on loans to households had vanished, 

both for housing loans and consumer loans. Similar patterns were observed for credit margins 

(see Chart 10). 

The euro area bank lending survey / January 2014 

16 

 
 
 
 
Chart  10    Impact  of  REGULATORY  AND  SUPERVISORY  ACTION  ON  THE 
TIGHTENING OF CREDIT STANDARDS/CREDIT MARGINS 

(net percentages of banks) 

Note: The net percentages are defined as the difference between the sum of the percentages for “tightened considerably” and 
“tightened somewhat” and the sum of the percentages for “eased somewhat” and “eased considerably”.  

For  the  first  half  of  2014  banks  expect  a  further  net  tightening  of  both  credit  standards  and 

margins  for  loans  to  enterprises,  due  to  regulatory  and  supervisory  pressures.  The  expected 

restriction is of the same order of magnitude as in the second half of 2013. A small net easing is 

expected for loans to households for house purchase. 

The euro area bank lending survey / January 2014 

17 

 
 
 
 
ANNEX 

RESULTS FOR THE INDIVIDUAL QUESTIONS 
I 

LOANS OR CREDIT LINES TO ENTERPRISES 

1. Over the past three months, how have your bank’s credit standards as applied 
to the approval of loans or credit lines to enterprises changed? (in percentages, unless 
otherwise stated) 

Overall

Loans to small and 
medium‐sized 
enterprises

Loans to large 
enterprises

Short‐term loans

Long‐term loans

Oct 13
0
5
94
1
0
100
5
2
2.95
127

Tightened considerably
Tightened somewhat
Remained basically unchanged
Eased somewhat
Eased considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding
Notes:  The  net  percentage  is  defined  as  the  difference  between  the  sum  of  the  percentages  for  “tightened  considerably”  and 
“tightened  somewhat”,  and  the  sum  of  the  percentages  for  “eased  somewhat”  and  “eased  considerably”.  The  diffusion  index  is 
defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered “considerably” 
a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by attributing the 
values 1 to 5 to the first possible answer and consequently for the others. 

Oct 13
0
5
94
1
0
100
5
2
2.95
127

Jan 14
0
5
94
1
0
100
5
2
2.95
127

Oct 13
0
5
94
1
0
100
3
2
2.96
127

Oct 13
0
5
95
0
0
100
5
3
2.95
122

Oct 13
0
5
92
2
0
100
3
2
2.96
123

Jan 14
0
3
96
1
0
100
2
1
2.98
127

Jan 14
0
3
91
6
1
100
‐3
‐2
3.04
123

Jan 14
0
3
93
4
0
100
‐1
‐1
3.01
127

Jan 14
0
5
93
2
0
100
2
1
2.98
123

Chart  1    Changes  in  credit  standards  applied  to  the  approval  of  loans  or 
credit lines to enterprises 

(net percentages of banks contributing to tightening standards) 

30

20

10

0

-10

actual

expected

Overall

Small and
medium‐
sized 
enterprises

Large 
enterprises

Short‐
term loans

Long‐term
loans

30

20

10

0

-10

1
Q
2
1

3
Q
2
1

1
Q
3
1

3
Q
3
1

1
Q
4
1

2
Q
2
1

4
Q
2
1

2
Q
3
1

4
Q
3
1

1
Q
2
1

3
Q
2
1

1
Q
3
1

3
Q
3
1

1
Q
4
1

2
Q
2
1

4
Q
2
1

2
Q
3
1

4
Q
3
1

1
Q
2
1

3
Q
2
1

1
Q
3
1

3
Q
3
1

1
Q
4
1

The euro area bank lending survey / January 2014 

1 

 
 
 
2.  Over  the  past  three  months,  how  have  the  following  factors  affected  your 
bank’s  credit  standards  as  applied  to  the  approval  of  loans  or  credit  lines  to 
enterprises? (in percentages, unless otherwise stated) 

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

A) Cost of funds and balance 
sheet constraints
Costs related to your bank's 
capital position
Your bank's ability to access 
market financing
Your bank's liquidity position
B) Pressure from competition
Competition from other banks
Competition from non‐banks
Competition from market 
financing
C) Perception of risk
Expectations regarding general 
economic activity
Industry or firm‐specific outlook
Risk on collateral demanded

0

0
0

0
0

0

0
0
0

1

0
0

1
0

0

2
5
2

91

90
89

83
90

90

89
88
92

1

1
5

9
0

0

1
1
1

0

0
0

1
0

0

0
0
0

6

9
6

7
10

10

7
6
6

3

‐1
‐7

‐7
0

‐3

4
10
4

0

0
‐5

‐9
0

0

1
4
1

1

0
‐4

‐4
0

‐2

2
5
2

0

0
‐2

‐5
0

0

1
2
1

2.97

3.00

3.01
3.09

3.08
3.00

3.00
3.05

3.10
3.00

3.04

3.00

2.96
2.90
2.95

2.99
2.96
2.99

SMALL AND MEDIUM‐SIZED ENTERPRISES

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

A) Cost of funds and balance 
sheet constraints
Costs related to your bank's 
capital position
Your bank's ability to access 
market financing
Your bank's liquidity position
B) Pressure from competition
Competition from other banks
Competition from non‐banks
Competition from market 
financing
C) Perception of risk
Expectations regarding general 
economic activity
Industry or firm‐specific outlook
Risk on collateral demanded

LARGE ENTERPRISES

A) Cost of funds and balance 
sheet constraints
Costs related to your bank's 
capital position
Your bank's ability to access 
market financing
Your bank's liquidity position
B) Pressure from competition
Competition from other banks
Competition from non‐banks
Competition from market 
financing
C) Perception of risk
Expectations regarding general 
economic activity
Industry or firm‐specific outlook
Risk on collateral demanded

0

0
0

0
0

0

0
0
0

‐‐

0

0
0

0
0

0

0
0
0

1

1
1

0
0

0

2
6
1

‐

1

1
0

1
0

0

3
7
0

86

84
86

82
86

87

87
79
89

1

1
1

7
0

0

1
5
1

0

0
0

1
0

0

0
0
0

12

14
12

11
13

13

10
10
10

°

+

++

NA

2

0
‐2

‐6
0

0

5
11
4

1

0
‐1

‐7
0

0

1
1
1

1

0
‐1

‐3
0

0

2
5
2

1

0
0

‐4
0

0

1
1
0

2.98

2.99

3.00
3.02

3.07
3.00

3.00
3.00

3.09
3.00

3.00

3.00

2.94
2.88
2.95

2.99
2.98
2.99

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

87

85
86

76
84

84

85
82
90

1

1
3

9
0

0

2
2
0

0

0
0

1
0

0

0
0
0

11

13
11

13
16

16

10
10
10

2

0
‐8

‐7
‐1

‐2

3
9
0

0

0
‐3

‐9
0

0

1
6
0

1

0
‐4

‐3
0

‐1

2
4
0

0

0
‐2

‐5
0

0

1
3
0

2.98

3.00

3.00
3.10

3.08
3.01

3.00
3.03

3.11
3.00

3.03

3.00

2.97
2.91
3.00

2.99
2.94
3.00

NA = not available; NetP = net percentage; DI = diffusion index. 

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

The euro area bank lending survey / January 2014 

2 

 
 
 
Chart  2a    Factors  affecting  credit  standards  applied  to  the  approval  of  loans  or 
credit lines to enterprises 

(net percentages of banks contributing to tightening standards) 

40

30

20

10

0

‐10

Chart 2b 

5

0

‐5

‐10

40

30

20

10

0

‐10

5

0

‐5

‐10

Costs related 
to bank's 
capital 
position

Bank's ability 
to access 
market 
financing

Bank's liquidity 
position

Expectations 
regarding 
general 
economic 
activity

Industry or 
firm‐
specific 

Risk on 
collateral 
demanded

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

Competition  from 
other banks

Competition 
from non‐banks

Competition  from 
market financing

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

3 

 
 
 
 
3.  Over  the  past  three  months,  how  have  your  bank’s  conditions  and  terms  for 
approving  loans  or  credit  lines  to  enterprises  changed?    (in  percentages,  unless 
otherwise stated) 

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

A) Price
Your bank's margin on average 
loans
Your bank's margin on riskier 
loans
B) Other conditions and terms
Non‐interest rate charges
Size of the loan or credit line
Collateral requirements
Loan covenants
Maturity

0

0

0
0
0
0
0

8

73

13

10

80

4
2
3
1
3

85
90
91
92
89

2

5
2
1
1
3

1

1

0
0
0
0
0

6

6

6
6
6
6
6

‐9

8

1
3
2
‐1
0

‐7

6

‐1
0
2
‐1
0

‐5

5

0
2
1
‐1
0

‐4

3

‐1
0
1
0
0

3.12

3.09

2.91

2.95

3.00
2.97
2.98
3.01
3.00

3.01
3.00
2.98
3.01
3.00

SMALL AND MEDIUM‐SIZED ENTERPRISES

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

A) Price
Your bank's margin on average 
loans
Your bank's margin on riskier 
loans
B) Other conditions and terms
Non‐interest rate charges
Size of the loan or credit line
Collateral requirements
Loan covenants
Maturity

LARGE ENTERPRISES

A) Price
Your bank's margin on average 
loans
Your bank's margin on riskier 
loans
B) Other conditions and terms
Non‐interest rate charges
Size of the loan or credit line
Collateral requirements
Loan covenants
Maturity

0

0

1
0
0
0
0

‐‐

0

0

0
0
1
0
0

3
2
2
1
2

‐

6

9

2
4
3
1
5

8

74

11

79

85
86
87
89
83

8

0

2
2
1
1
5

1

0

0
0
0
0
0

10

10

10
10
10
10
10

‐2

11

3
3
3
1
2

‐1

11

2
0
2
0
‐2

‐1

6

2
2
2
1
1

‐1

5

2
0
1
0
‐1

3.02

3.01

2.86

2.88

2.96
2.96
2.96
2.99
2.98

2.96
3.00
2.98
3.00
3.02

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

70

12

75

82
82
84
85
81

2

5
2
1
2
3

1

1

0
0
0
0
0

11

12

11
13
12
12
11

‐12

6

2
1
1
‐1
0

‐7

6

‐4
2
2
‐2
2

‐6

3

0
1
0
0
0

‐4

2

‐2
1
2
‐1
1

3.15

3.09

2.94

2.96

3.00
2.99
2.99
3.01
3.00

3.04
2.98
2.97
3.02
2.98

NA = not available; NetP = net percentage; DI = diffusion index. 

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

The euro area bank lending survey / January 2014 

4 

 
 
 
Chart  3    Changes  in  terms  and  conditions  for  approving  loans  or  credit  lines  to 
enterprises 

(net percentages of banks reporting tightening terms and conditions) 

OVERALL 

Margins on 
average loans

Margins on 
riskier loans

Size of loan 
or credit line

Collateral 
requirements

Loan 
covenants

Non‐interest 
rate charges

Maturity

35

30

25

20

15

10

5

0

‐5

‐10

‐15

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4. Over the past three months, how has the demand for loans or credit lines to 
enterprises  changed  at  your  bank,  apart  from  normal  seasonal  fluctuations?  (in 
percentages, unless otherwise stated) 

Overall

Loans to small and 
medium‐sized 
enterprises

Loans to large 
enterprises

Short‐term loans

Long‐term loans

Oct 13

Jan 14

Oct 13

Jan 14

Oct 13

Jan 14

Oct 13

Jan 14

Oct 13

Jan 14

Decreased considerably
Decreased somewhat
Remained basically unchanged
Increased somewhat
Increased considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding

2
16
76
6
0
100
‐12
‐7
2.86
127

2
16
73
9
0
100
‐10
‐6
2.88
127

4
15
76
6
0
100
‐12
‐8
2.84
123

4
15
73
8
0
100
‐10
‐7
2.86
123

1
15
77
8
0
100
‐8
‐4
2.91
122

2
17
74
7
0
100
‐12
‐7
2.86
123

2
12
80
7
0
100
‐7
‐4
2.92
127

2
14
79
5
0
100
‐10
‐6
2.88
127

2
16
75
6
0
100
‐12
‐7
2.86
127

2
15
75
9
0
100
‐8
‐5
2.90
127

Notes:  The  net  percentage  is  defined  as  the  difference  between  the  sum  of  the  percentages  for  “tightened  considerably”  and 
“tightened  somewhat”,  and  the  sum  of  the  percentages  for  “eased  somewhat”  and  “eased  considerably”.  The  diffusion  index  is 
defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered “considerably” 
a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by attributing the 
values 1 to 5 to the first possible answer and consequently for the others. 

The euro area bank lending survey / January 2014 

5 

 
 
 
 
 
Chart 4  Changes in demand for loans or credit lines to enterprises 

(net percentages of banks reporting a positive contribution to demand) 

actual

expected

Overall

Small and
medium‐
sized 
enterprises

Large 
enterprises

Short‐
term loans

Long‐term
loans

20

10

0

-10

-20

-30

-40

20

10

0

-10

-20

-30

-40

1
Q
2
1

3
Q
2
1

1
Q
3
1

3
Q
3
1

1
Q
4
1

2
Q
2
1

4
Q
2
1

2
Q
3
1

4
Q
3
1

1
Q
2
1

3
Q
2
1

1
Q
3
1

3
Q
3
1

1
Q
4
1

2
Q
2
1

4
Q
2
1

2
Q
3
1

4
Q
3
1

1
Q
2
1

3
Q
2
1

1
Q
3
1

3
Q
3
1

1
Q
4
1

5.  Over  the  past  three  months,  how  have  the  following  factors  affected  the 
demand for loans or credit lines to enterprises? (in percentages, unless otherwise stated) 

A) Financing needs
Fixed investment
Inventories and working capital
Mergers/acquisitions and 
corporate restructuring
Debt restructuring
B) Use of alternative finance
Internal financing
Loans from other banks
Loans from non‐banks
Issuance of debt securities
Issuance of equity

‐‐

‐

°

3
0

0
1

0
0
0
0
0

15
12

9
2

7
4
1
12
0

67
75

79
74

86
86
89
73
86

+

9
5

5
16

2
4
1
3
0

++

NA

0
0

0
1

0
0
0
0
0

6
8

7
7

6
6
9
13
14

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

‐22
2

‐1
16

‐7
‐2
‐1
‐7
0

‐9
‐7

‐4
14

‐5
0
0
‐9
0

‐12
1

‐1
9

‐4
‐1
‐1
‐4
0

‐6
‐4

‐2
7

‐3
0
0
‐4
0

2.74
3.03

2.98
3.18

2.92
2.98
2.99
2.92
3.00

2.87
2.92

2.96
3.15

2.94
3.00
3.00
2.90
3.00

NA = not available; NetP = net percentage; DI = diffusion index. 

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

The euro area bank lending survey / January 2014 

6 

 
 
 
 
 
Chart 5a  Factors affecting demand for loans and credit lines to enterprises 

(net percentages of banks reporting a positive contribution to demand) 

20

10

0

‐10

‐20

‐30

‐40

Fixed investment

Inventories  and 
working capital

M&As and 
corporate 

Debt restructuring

20

10

0

‐10

‐20

‐30

‐40

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

Chart 5b  Factors affecting demand for loans and credit lines to enterprises 

(net percentages of banks reporting a positive contribution to demand) 

5

0

‐5

‐10

‐15

5

0

‐5

‐10

‐15

Internal 
financing

Loans from 
other banks

Loans from 
non‐banks

Issuance 
of debt 
securities

Issuance  of 
equity

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

7 

 
 
 
 
 
6. Please indicate how you expect your bank’s credit standards as applied to the 
approval  of  loans  or  credit  lines  to  enterprises  to  change  over  the  next  three 
months. (in percentages, unless otherwise stated) 

Overall

Loans to small and 
medium‐sized 
enterprises

Loans to large 
enterprises

Short‐term loans

Long‐term loans

Oct 13
0
1
92
6
0
100
‐5
‐2
3.05
127

Tighten considerably
Tighten somewhat
Remain basically unchanged
Ease somewhat
Ease considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding
Notes:  The  net  percentage  is  defined  as  the  difference  between  the  sum  of  the  percentages  for  “tightened  considerably”  and 
“tightened  somewhat”,  and  the  sum  of  the  percentages  for  “eased  somewhat”  and  “eased  considerably”.  The  diffusion  index  is 
defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered “considerably” 
a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by attributing the 
values 1 to 5 to the first possible answer and consequently for the others. 

Oct 13
0
3
93
3
0
100
0
0
2.99
126

Jan 14
0
6
89
5
0
100
2
1
2.98
127

Oct 13
0
3
93
4
0
100
‐1
0
3.00
122

Oct 13
0
1
91
8
0
100
‐6
‐3
3.06
127

Oct 13
0
3
91
6
0
100
‐3
‐1
3.03
123

Jan 14
0
9
84
7
0
100
2
1
2.98
123

Jan 14
0
5
91
5
0
100
0
0
3.00
127

Jan 14
0
2
91
7
0
100
‐5
‐3
3.05
127

Jan 14
0
3
86
11
1
100
‐9
‐5
3.09
123

Chart  6    Expected  credit  standards  for  the  approval  of  loans  or  credit  lines  to 
enterprises 

(net percentages of banks contributing to tightening standards) 

20

15

10

5

0

‐5

‐10

20

15

10

5

0

‐5

‐10

Overall

Small and 
medium‐
sized 
enterprises

Large 
enterprises

Short‐
term 
loans

Long‐term 
loans

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

The euro area bank lending survey / January 2014 

8 

 
 
 
 
7. Please indicate how you expect demand for loans or credit lines to enterprises 
to change at your bank over the next three months (apart from normal seasonal 
fluctuations) (in percentages, unless otherwise stated) 

Decrease considerably
Decrease somewhat
Remain basically unchanged
Increase somewhat
Increase considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding

Overall

Loans to small and 
medium‐sized 
enterprises

Loans to large 
enterprises

Oct 13
1
10
75
13
0
100
2
0
3.01
127

Jan 14
0
2
85
13
0
100
10
5
3.10
126

Oct 13
2
11
73
15
0
100
2
0
3.01
123

Jan 14
0
6
74
20
0
100
13
7
3.13
122

Oct 13
0
6
85
9
0
100
3
1
3.03
122

Jan 14
0
2
86
11
0
100
9
4
3.09
122

Short‐term loans

Long‐term loans

Oct 13
1
7
78
14
0
100
6
2
3.04
127

Jan 14
0
2
80
18
0
100
16
8
3.16
126

Oct 13
1
10
80
8
0
100
‐3
‐2
2.95
127

Jan 14
0
4
87
9
0
100
5
3
3.05
125

Notes: The net percentage is defined as the difference between the sum of the percentages for “tightened considerably” and 
“tightened somewhat”, and the sum of the percentages for “eased somewhat” and “eased considerably”. The diffusion index is 
defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered “considerably” 
a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by attributing the 
values 1 to 5 to the first possible answer and consequently for the others. 

Chart 7  Expected demand for loans and credit lines to enterprises 

(net percentages of banks reporting a positive contribution to demand) 

20

10

0

‐10

‐20

20

10

0

‐10

‐20

Overall

Small and 
medium‐
sized 
enterprises

Large 
enterprises

Short‐term 
loans

Long‐term 
loans

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

The euro area bank lending survey / January 2014 

9 

 
 
 
 
 
II 

LOANS TO HOUSEHOLDS  

8. Over the past three months, how have your bank’s credit standards as applied 
to the approval of loans to households changed? (in percentages, unless otherwise stated) 

Tightened considerably
Tightened somewhat
Remained basically unchanged
Eased somewhat
Eased considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding

Loans for house 
purchase

Oct 13
0
4
93
2
0
100
3
1
2.97
122

Jan 14
0
4
90
6
0
100
‐1
‐1
3.01
123

Consumer credit 
and other lending
Oct 13
Jan 14
0
0
2
1
97
98
0
0
0
0
100
100
2
1
1
1
2.98
2.99
122
122

Notes: The net percentage is defined as the difference between the sum of the percentages for “tightened considerably” and 
“tightened somewhat”, and the sum of the percentages for “eased somewhat” and “eased considerably”. The diffusion index is 
defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered “considerably” 
a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by attributing the 
values 1 to 5 to the first possible answer and consequently for the others. 

Chart 8  Credit standards applied to the approval of loans to households 

(net percentages of banks reporting tightening credit standards) 

20

15

10

5

0

‐5

Loans for house 
purchase

Consumer  credit and 
other lending

20

15

10

5

0

‐5

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

10 

 
 
 
 
 
9.  Over  the  past  three  months,  how  have  the  following  factors  affected  your 
bank’s  credit  standards  as  applied  to  the  approval  of  loans  to  households  for 
house purchase? (in percentages, unless otherwise stated) 

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

3

0

0

84

A) Cost of funds and balance 
sheet constraints
B) Pressure from competition
Competition from other banks
Competition from non‐banks
C) Perception of risk
Expectations regarding general 
economic activity
Housing market prospects
NA = not available; NetP = net percentage; DI = diffusion index. 

84
87

82
82

0
0

1
1

4
0

4
3

4
4

0
0

0

0
0

0
0

12

11
11

10
10

1

‐1
1

2
8

3

‐3
1

0
1

0

0
1

1
4

2

‐1
1

0
1

3.00

2.96

3.01
2.98

3.03
2.98

2.97
2.90

2.99
2.98

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

Chart  9    Factors  affecting  credit  standards  applied  to  the  approval  of  loans  to 
households 

(net percentages of banks contributing to tightening credit standards) 

25

20

15

10

5

0

‐5

25

20

15

10

5

0

‐5

Cost of funds 
and balance 
sheet 
constraints

Competition 
from other 
banks

Competition 
from non‐
banks

Expectations 
regarding 
general 
economic 
activity

Housing 
market 
prospects

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

11 

 
 
 
 
10. Over the past three months, how have your bank’s conditions and terms for 
approving  loans  to  households  for  house  purchase  changed?  (in percentages, unless 
otherwise stated) 

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

2

0

77

A) Price
Your bank's margin on average 
loans
Your bank's margin on riskier 
loans
B) Other conditions and terms
Collateral requirements
Loan‐to‐value ratio
Maturity
Non‐interest rate charges
A = not available; NetP = net percentage; DI = diffusion index. 

89
81
88
88

0
0
0
0

0
6
0
1

1
3
1
1

82

11

3

3

0

0

0

0
0
0
0

10

12

10
10
10
10

‐7

‐10

‐4

4

0
6
4
2

0

1
‐3
1
1

2

0
3
2
1

‐5

0

1
‐1
1
0

3.08

3.11

2.95

3.00

3.00
2.93
2.95
2.99

2.99
3.02
2.98
2.99

N

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

Chart 10  Changes in terms and conditions for approving loans to households for 
house purchase 

(net percentages of banks reporting tightening terms and conditions) 

30

20

10

0

‐10

‐20

30

20

10

0

‐10

‐20

Margins on 
average 
loans

Margins on 
riskier loans

Collateral 
requirements

Loan‐to‐
value ratio

Maturity

Non‐interest 
rate charges

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

12 

 
 
 
11.  Over  the  past  three  months,  how  have  the  following  factors  affected  your 
bank’s credit standards as applied to the approval of consumer credit and other 
lending  to  households  (as  described  in  question  8)?  (in percentages, unless otherwise 
stated) 

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

1

2

0

86

A) Cost of funds and balance 
sheet constraints
B) Pressure from competition
Competition from other banks
Competition from non‐banks
C) Perception of risk
Expectations regarding general 
economic activity
Creditworthiness of consumers
Risk on collateral demanded
NA = not available; NetP = net percentage; DI = diffusion index. 

87
89
88

88
87

2
0
0

0
0
0

2
1
1

0
0

0
0

2
2

0

0
0

0
0
0

11

10
11

9
9
10

2

‐1
‐1

‐1
3
2

1

‐2
‐2

0
1
1

2

‐1
‐1

0
2
1

1

‐1
‐1

0
1
1

2.96

2.99

3.02
3.02

3.02
3.02

3.00
2.95
2.95

2.99
2.98
2.98

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

Chart 11  Factors affecting credit  standards  applied to the approval of consumer 
credit and other lending to households  

(net percentages of banks contributing to tightening credit standards) 

20

15

10

5

0

‐5

20

15

10

5

0

‐5

Cost of 
funds and 
balance 
sheet 
constraints

Competition 
from other 
banks

Competition 
from non‐
banks

Expectations 
regarding 
general 
economic 
activity

Credit‐
worthiness  of 
consumers

Risk on 
collateral 
demanded

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

13 

 
 
 
12. Over the past three months, how have your bank’s conditions and terms for 
approving consumer credit and other lending to households changed? (in percentages, 
unless otherwise stated) 

A) Price
Your bank's margin on average 
loans
Your bank's margin on riskier 
loans
B) Other conditions and terms
Collateral requirements
Maturity
Non‐interest rate charges

‐‐

0

0

0
0
0

‐

3

2

1
0
0

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

82

88

89
90
90

4

0

0
1
0

1

1

0
0
0

9

9

10
9
9

0

3

0
2
0

‐2

1

1
‐1
0

0

2

0
1
0

‐1

3.01

3.03

0

0
0
0

2.96

2.99

3.00
2.98
3.00

2.99
3.01
2.99

NA = not available; NetP = net percentage; DI = diffusion index. 

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

Chart  12    Changes  in  terms  and  conditions  for  approving  consumer  credit  and 
other loans to households 

(net percentages of banks reporting tightening terms and conditions) 

20

15

10

5

0

‐5

20

15

10

5

0

‐5

Margins on 
average loans

Margins on 
riskier loans

Collateral 
requirements

Maturity

Non‐interest 
rate charges

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

14 

 
 
 
 
13.  Over  the  past  three  months,  how  has  the  demand  for  loans  to  households 
changed at your bank, apart from normal seasonal fluctuations? (in percentages, unless 
otherwise stated) 

Decreased considerably
Decreased somewhat
Remained basically unchanged
Increased somewhat
Increased considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding

Loans for house 
purchase

Oct 13
3
13
63
21
0
100
5
1
3.02
122

Jan 14
3
15
67
15
0
100
‐3
‐3
2.94
122

Consumer credit 
and other lending
Oct 13
Jan 14
2
0
8
14
80
71
10
14
0
1
100
100
‐1
1
‐1
1
2.97
3.02
123
123

Notes: The net percentage is defined as the difference between the sum of the percentages for “tightened considerably” and 
“tightened somewhat”, and the sum of the percentages for “eased somewhat” and “eased considerably”. The diffusion index is 
defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered “considerably” 
a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by attributing the 
values 1 to 5 to the first possible answer and consequently for the others. 

Chart 13  Demand for loans to households 

(net percentages of banks reporting positive loan demand) 

10

0

‐10

‐20

‐30

10

0

‐10

‐20

‐30

Loans for house 
purchase

Consumer  credit and 
other lending

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

15 

 
 
 
 
14.  Over  the  past  three  months,  how  have  the  following  factors  affected  the 
demand for loans to households for house purchase (as described in question 13)? 
(in percentages, unless otherwise stated) 

‐‐

‐

°

+

++

NA

NetP

DI
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

A) Financing needs
Housing market prospects
Consumer confidence
Non‐housing‐related consumption 
expenditure
B) Use of alternative finance
Household savings
Loans from other banks
Other sources of finance

0
0

0

1
0
0

10
8

3

2
6
1

68
77

87

83
81
87

11
5

0

3
2
0

0
0

0

0
0
0

10
10

10

11
11
12

3
‐5

‐6

‐5
‐3
0

1
‐3

‐3

0
‐5
‐1

1
‐3

‐3

‐3
‐1
0

0
‐2

‐2

‐1
‐2
‐1

3.01
2.92

3.01
2.96

2.94

2.97

2.94
2.97
3.00

2.99
2.94
2.99

NA = not available; NetP = net percentage; DI = diffusion index. 

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

Chart 14  Factors affecting demand for loans to households for house purchase 

(net percentages of banks reporting a positive contribution to demand) 

10

0

‐10

‐20

‐30

10

0

‐10

‐20

‐30

Housing 
market 
prospects

Consumer 
confidence

Non‐
housing‐
related 
consumption 
expenditure

Household 
savings

Loans from 
other banks

Other 
sources  of 
finance

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

16 

 
 
 
 
15.  Over  the  past  three  months,  how  have  the  following  factors  affected  the 
demand  for  consumer  credit  and  other  lending  to  households  (as  described  in 
question 13)? (in percentages, unless otherwise stated) 

‐‐

‐

°

+

++

NA

NetP

NetP
Oct 13 Jan 14 Oct 13 Jan 14 Oct 13 Jan 14

Mean

A) Financing needs
Spending on durable consumer 
goods
Consumer confidence
Securities purchases
B) Use of alternative finance
Household savings
Loans from other banks
Other sources of finance
NA = not available; NetP = net percentage; DI = diffusion index. 

71
77
80

86
83
87

9
9
0

3
0
0

5
4
1

0
0
0

2
6
0

2
1
0

0
0
0

0
0
0

12
11
19

10
10
12

‐5
‐4
0

‐4
‐3
‐1

1
5
‐1

0
‐5
0

‐3
‐2
0

‐2
‐2
‐1

‐1
2
0

0
‐3
0

2.93
2.95
3.00

2.95
2.97
2.98

2.97
3.06
2.99

3.00
2.94
3.00

Notes: The net percentage is defined as the difference between the sum of banks responding “- -” (contributed considerably to 
tightening) and “-” (contributed somewhat to tightening), and the sum of banks responding “+” (contributed somewhat to easing) 
and “+ +” (contributed considerably to easing). “°” means “contributed to basically unchanged credit standards”. The diffusion 
index is defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

Chart  15    Factors  affecting  demand  for  consumer  credit  and  other  lending  to 
households  

(net percentages of banks reporting a positive contribution to demand) 

10

5

0

‐5

‐10

‐15

‐20

‐25

‐30

10

5

0

‐5

‐10

‐15

‐20

‐25

‐30

Spending on 
durable 
consumer 
goods

Consumer 
confidence

Securities 
purchases

Household 
savings

Loans from 
other banks

Other 
sources of 
finance

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

4
Q
2
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

The euro area bank lending survey / January 2014 

17 

 
 
 
16. Please indicate how you expect your bank’s credit standards as applied to the 
approval  of  loans  to  households  to  change  over  the  next  three  months.  (in 
percentages, unless otherwise stated) 

Tighten considerably
Tighten somewhat
Remain basically unchanged
Ease somewhat
Ease considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding

Loans for house 
purchase

Consumer credit 
and other lending

Oct 13
0
5
90
5
0
100
0
0
3.00
122

Jan 14
0
3
90
7
0
100
‐4
‐2
3.04
122

Oct 13
0
0
98
2
0
100
‐2
‐1
3.02
122

Jan 14
0
1
94
4
0
100
‐3
‐1
3.03
122

Notes: The net percentage is defined as the difference between the sum of the percentages for “tightened considerably” and 
“tightened somewhat”, and the sum of the percentages for “eased somewhat” and “eased considerably”. The diffusion index is 
defined as the net percentage weighted according to the intensity of the response, giving lenders who have answered “considerably” 
a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by attributing the 
values 1 to 5 to the first possible answer and consequently for the others. 

Chart 16  Expected credit standards for loans to households  

(net percentages of banks expecting tightening credit standards) 

15

10

5

0

‐5

Loans for house 
purchase

Consumer  credit and 
other lending

15

10

5

0

‐5

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

The euro area bank lending survey / January 2014 

18 

 
 
 
 
 
17.  Please  indicate  how  you  expect  demand  for  loans  to  households  to  change 
over  the  next  three  months  at  your  bank  (apart  from  normal  seasonal 
fluctuations). (in percentages, unless otherwise stated) 

Decrease considerably
Decrease somewhat
Remain basically unchanged
Increase somewhat
Increase considerably
Total
Net percentage
Diffusion index
Mean
Number of banks responding

Loans for house 
purchase

Consumer credit 
and other lending

Oct 13
0
8
74
18
0
100
10
5
3.10
122

Jan 14
0
6
72
22
0
100
16
8
3.16
122

Oct 13
0
5
85
10
0
100
5
2
3.05
123

Jan 14
0
2
86
12
0
100
10
5
3.10
123

Notes:  The  net  percentage  is  defined  as  the  difference  between  the  sum  of  the  percentages  for  “tightened  considerably”  and 
“tightened  somewhat”,  and  the  sum  of  the  percentages  for  “eased  somewhat”  and  “eased  considerably”.  The  diffusion  index  is 
defined  as  the  net  percentage  weighted  according  to  the  intensity  of  the  response,  giving  lenders  who  have  answered 
“considerably” a weight twice as high (score of 1) as lenders having answered “somewhat” (score of 0.5). The mean is calculated by 
attributing the values 1 to 5 to the first possible answer and consequently for the others. 

Chart 17  Expected demand for loans to households  

(net percentages of banks expecting positive loan demand) 

20

10

0

‐10

‐20

‐30

20

10

0

‐10

‐20

‐30

Loans for house purchase

Consumer  credit and 
other lending

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

1
Q
3
1

2
Q
3
1

3
Q
3
1

4
Q
3
1

1
Q
4
1

The euro area bank lending survey / January 2014 

19 

 
 
 
 
RESULTS FOR THE AD HOC QUESTIONS  
I.  As  a  result  of  the  situation  in  financial  markets(1),  has  your  market  access 
changed when tapping your usual sources of wholesale and retail funding and/or 
has your ability to transfer risk changed over the past three months, or are you 
expecting this access/activity to change over the next three months?¹ (in percentages 
unless otherwise stated) 

Over the past three months

Over the next three months

‐‐

‐

o

+

+ + NetP Mean

Standard 
deviation

‐‐

‐

o

+

+ + NetP Mean

N/A(2)

Standard 
deviation

A) Retail funding

Short‐term deposits (up to one year)

Long‐term (more than one year) 
deposits and other retail funding 
instruments 
B) Inter‐bank unsecured money 
market
Very short‐term money market (up to 
one week)
Short‐term money market (more than 
one week)
C) Wholesale debt securities(3)
Short‐term debt securities (e.g. 
certificates of deposit or commercial 
paper)
Medium to long‐term debt securities 
(incl. covered bonds)
D) Securitisation(4)
Securitisation of corporate loans 
Securitisation of loans for house 
purchase 
E) Ability to transfer credit risk off 
balance sheet(5)

0

0

0

2

0

0

0

0

0

13

78

7

85

11

81

12

82

9

7

8

4

20

70

11

7

8

1

0

68

25

81

81

11

18

98

2

0

0

0

0

0

0

0

0

0

4

0

3

9

2.96

0.49

3.00

0.40

2.97

0.45

2.89

0.49

9

2.91

0.57

‐19

3.19

0.55

‐3

3.03

‐17

3.17

0.52

0.48

‐2

3.02

0.28

2

0

0

0

0

0

0

0

0

6

5

2

5

4

2

0

0

6

86

92

90

88

6

3

8

7

85

11

83

15

91

87

9

13

92

2

0

0

0

0

0

0

0

0

0

2

2

‐6

‐3

2.96

0.47

10

2.98

0.29

10

3.06

0.33

3.03

0.36

‐7

3.07

0.41

‐14

3.14

0.40

‐9

3.09

‐13

3.13

0.37

0.39

4

2.96

0.38

8

8

21

14

58

54

63

(1) Please also take into account any effect of state guarantees for debt securities and recapitalisation support. 

(2) Please select “N/A” (not applicable) only if the source of funding is not relevant for your bank.  

(3) Usually involves on-balance sheet funding.  

(4) Usually involves the sale of loans from banks’ balance sheets, i.e. off-balance sheet funding. 

(5) Usually involves the use of credit derivatives, with the loans remaining on banks’ balance sheets. 

Notes: “- -“ = deteriorated considerably/will deteriorate considerably; “-“ = deteriorated somewhat/will deteriorate somewhat; 
“o”= remained unchanged/will remain unchanged; “+” = eased somewhat/will ease somewhat; “++” = eased considerably/will 
ease considerably. The mean and standard deviation are calculated by attributing the values 1 to 5 to the first possible answer and 
consequently for the others. Figures may not exactly sum up due to rounding. 

The euro area bank lending survey / January 2014 

20 

 
 
 
II.  In  connection  with  the  new  regulatory  or  supervisory  actions  (*),  has  your 
bank:  increased/decreased  risk-weighted  assets;  increased/decreased  its  capital 
position, experienced an easing/tightening of its funding conditions over the past 
six months, and/or does it intend to do so over the next 6 months? 

Risk‐weighted assets
 Of which:    Average loans
                   Riskier loans
Capital
Of which:     Retained earnings
                     Capital issuance1)
Impact on your bank’s funding 
conditions

Risk‐weighted assets
 Of which:    Average loans
                   Riskier loans
Capital
Of which:     Retained earnings
                     Capital issuance1)
Impact on your bank’s funding 
conditions

‐‐

8
6
6
0
1
0

0

‐‐

3
2
3
1
1
1

3

‐

22
17
25
4
2
3

4

‐

24
17
22
3
1
4

8

○

53
61
58
59
61
62

81

○

48
60
54
50
57
61

77

Over the past six months

+

7
8
2
25
24
13

3

+ +

NA

NetP Mean

0
0
0
0
0
1

0

9
7
8
12
13
22

11

‐23
‐15
‐29
20
22
11

1

2.7
2.8
2.6
3.3
3.3
3.2

3.0

Over the next six months

+

15
13
10
33
25
12

5

+ +

NA

NetP Mean

2
0
0
2
1
1

0

8
7
11
11
15
22

8

‐10
‐7
‐15
31
24
8

6

2.9
2.9
2.9
3.4
3.3
3.1

2.9

Standard 
deviation
0.79
0.74
0.69
0.58
0.54
0.48

0.34

Standard 
deviation
0.81
0.70
0.74
0.67
0.56
0.58

0.58

(*) Please consider the regulatory requirements set out in the CRR/CRD IV, as adopted by the European Parliament in April 2013, 
which can be found at http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2013-
0114+0+DOC+XML+V0//EN and http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2013-
0115+0+DOC+XML+V0//EN&language=EN, as well as the requirements that will result from the comprehensive assessment to be 
conducted by the ECB and the participating national competent authorities in accordance with the provisions of the Regulation on 
the single supervisory mechanism, or those resulting from any other specific regulatory or supervisory actions that have recently 
been approved/implemented or that are expected to be approved/implemented in the near future. 

1) Includes the issuance of shares and hybrid instruments, as well as capital injections by, inter alia, national or supra-national public 
authorities. 

Notes: “- -“ = decreased considerably/will decrease considerably; “-“ = decreased somewhat/will decrease somewhat; “o”= 
remained unchanged/will remain unchanged; “+” = increased somewhat/will increase somewhat; “++” = increased 
considerably/will increase considerably. The mean and standard deviation are calculated by attributing the values 1 to 5 to the first 
possible answer and consequently for the others. 

The euro area bank lending survey / January 2014 

21 

 
 
 
III. Have any adjustments been made, or will any be made, to your bank’s credit 
standards/margins  for  loans  over  the  past/next  six  months,  owing  to  the  new 
regulatory or supervisory actions (*)? (in percentages unless otherwise stated) 

a) Credit standards

Over the past six months

Over the next six months

b) Credit margins

Over the past six months

Over the next six months

Loans and credit lines to 
enterprises 

Loans to households

Small and 
medium‐sized 
enterprises
0
7
91
2
0
5
2.95
0.31
0
7
90
3
0
4
2.96
0.33

‐‐
‐
=
+
+ +
Net Percentage
Mean
Standard deviation
‐‐
‐
=
+
+ +
Net Percentage
Mean
Standard deviation

Large 
enterprises

For house 
purchase

1
7
92
0
0
8
2.92
0.33
0
9
90
1
0
8
2.92
0.33

0
2
98
0
0
1
2.99
0.15
0
3
93
4
0
‐2
3.02
0.28

Consumer 
credit and 
other lending
0
1
99
0
0
1
2.99
0.10
0
2
98
0
0
2
2.98
0.16

Loans and credit lines to 
enterprises 

Loans to households

Small and 
medium‐sized 
enterprises
0
6
90
4
0
2
2.98
0.33
0
9
88
3
0
6
2.94
0.36

‐‐
‐
=
+
+ +
Net Percentage
Mean
Standard deviation
‐‐
‐
=
+
+ +
Net Percentage
Mean
Standard deviation

Large 
enterprises

For house 
purchase

1
4
90
5
0
0
2.99
0.37
0
10
86
5
0
5
2.95
0.39

0
4
94
2
0
1
2.99
0.27
0
4
88
8
0
‐4
3.04
0.35

Consumer 
credit and 
other lending
0
1
97
2
0
‐1
3.01
0.20
0
5
94
1
0
4
2.96
0.25

 (*) Please consider the regulatory requirements set out in the CRR/CRD IV, as adopted by the European Parliament in April 2013, 
which can be found at http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2013-
0114+0+DOC+XML+V0//EN and http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2013-
0115+0+DOC+XML+V0//EN&language=EN, as well as the requirements that will result from the comprehensive assessment to be 
conducted by the ECB and the participating national competent authorities in accordance with the provisions of the Regulation on 
the single supervisory mechanism, or those resulting from any other specific regulatory or supervisory actions that have recently 
been approved/implemented or that are expected to be approved/implemented in the near future. 

Notes: “- -“ = credit standards / margins have been tightened/will be tightened considerably; “-“ = credit standards / margins 
have been tightened/will be tightened somewhat; “o”= the requirements have basically not had/will not have any impact on credit 
standards / margins; “+” = credit standards / margins have been eased/will be eased somewhat; “++” = credit standards / 
margins have been eased/will be eased considerably. The mean and standard deviation are calculated by attributing the values 1 to 
5 to the first possible answer and consequently for the others. 

The euro area bank lending survey / January 2014 

22 

 
 
 
IV.  Given  the  developments  observed  in  the  European  sovereign  debt  market1), 
how  have  the  following  factors  contributed  to  changes  in  your  bank’s  funding 
conditions / credit standards / margins over the past three months? (in percentages 
unless otherwise stated) 

Impact on your bank's funding conditions

A) Direct exposure to sovereign debt
B) Value of sovereign collateral 
available for wholesale market 
transactions2)
C) Other effects3) 

A) Direct exposure to sovereign debt
B) Value of sovereign collateral 
available for wholesale market 
transactions2)
C) Other effects3) 

A) Direct exposure to sovereign debt
B) Value of sovereign collateral 
available for wholesale market 
transactions2)
C) Other effects3) 

‐‐
0

0

0

‐‐
0

0

0

‐‐
0

0

0

‐
2

0

1

=
90

93

98

+
8

7

1

+ + NetP Mean
3.05
0

‐5

SD
0.33

0

0

‐7

3.07

0.27

0

3.00

0.13

Loans or credit lines to enterprises

Impact on your bank's credit standards
Loans to households for house purchase

Loans to households for consumer credit 
and other lending

‐
4

2

1

=
94

98

99

+
2

0

0

+ + NetP Mean
2.98
0

2

SD
0.25

0

0

2

1

2.98

0.14

2.99

0.11

‐‐
0

0

0

‐
1

1

1

=
97

99

99

+
2

0

0

+ + NetP Mean SD
3.02 0.19
0

‐2

0

0

0

1

3.00 0.12

2.99 0.11

‐‐
0

0

0

‐
1

1

1

=
97

99

99

+
2

1

0

+ + NetP Mean SD
3.02 0.19
0

‐2

0

0

0

1

3.00 0.13

2.99 0.11

Loans or credit lines to enterprises

Impact on your bank's lending margins
Loans to households for house purchase

Loans to households for consumer credit 
and other lending

‐
2

=
96

+
2

+ + NetP Mean
3.00
0

0

SD
0.21

0 100 0

0 100 0

0

0

0

0

3.00

0.04

3.00

0.04

‐‐
0

0

0

‐
0

0

0

=
97

99

100

+
3

1

0

+ + NetP Mean SD
3.03 0.17
0

‐3

0

0

‐1

3.01 0.10

0

3.00 0.04

‐‐
0

0

0

‐
0

0

0

=
97

99

100

+
3

1

0

+ + NetP Mean SD
3.03 0.18
0

‐3

0

0

‐1

3.01 0.12

0

3.00 0.05

(1) 

(2) 

Please also take into account any effect of state guarantees for debt securities and recapitalisation support. 

For example, repos or secured transactions in derivatives. 

(3) 
of the domestic government’s implicit guarantee, as well as spillover effects on other assets, including the loan book. 

For instance, any automatic rating downgrade affecting your bank following a sovereign downgrade or changes in the value 

Notes: “- -“ = contributed considerably to a deterioration in my bank’s funding conditions/contributed considerably to a tightening 
of credit standards / contributed considerably to a widening of lending margins; “-“ = contributed somewhat to a deterioration in 
my bank’s funding conditions/contributed somewhat to a tightening of credit standards / contributed somewhat to a widening of 
lending margins; “o”= had no effect on my bank’s funding conditions/had no effect on my bank’s credit standards / had no effect on 
my bank’s lending margins; “+” = contributed somewhat to an easing in my bank’s funding conditions/contributed somewhat to an 
easing of credit standards / contributed somewhat to a narrowing of lending margins; “++” = contributed considerably to an 
easing in my bank’s funding conditions/contributed considerably to an easing of credit standards / contributed considerably to a 
narrowing of lending margins. The mean and standard deviation are calculated by attributing the values 1 to 5 to the first possible 
answer and consequently for the others. Figures may not exactly sum up due to rounding. 

The euro area bank lending survey / January 2014 

23 

 
 
 
GLOSSARY  
To  assist  respondent  banks  in  filling  out  the  questionnaire,  this  glossary  defines  the  most 

important terminology used in the bank lending survey: 

Capital 

In  accordance  with  the  Basel  capital  adequacy  requirements,  the  definition of  capital  includes 

both tier 1 capital (core capital) and tier 2 capital (supplementary capital). In the context of the 

EU Capital  Requirements Directive, Directive 2006/48/EC of the European Parliament and of 

the  Council  of  14  June  2006  relating  to  the  taking  up  and  pursuit  of  the  business  of  credit 

institutions  defines  capital  as  own  funds  and  makes  a  distinction  between  original  own  funds 

and additional own funds. 

Collateral 

The security given by a borrower to a lender as a pledge for the repayment of a loan. This could 

include certain financial securities, such as equity or debt securities, real estate or compensating 

balances  (a  compensating  balance  is  the  minimum  amount  of  a  loan  that  the  borrower  is 

required to keep in an account at the bank). 

Consumer confidence  

Consumers’ assessments of economic and financial trends in a particular country and/or in the 

euro area. They include assessments of  the past and current financial situations of households 

and  resulting  prospects  for  the  future,  assessments  of  the  past  and  current  general  economic 

situation  and  resulting  prospects  for  the  future,  as  well  as  assessments  of  the  advisability  of 

making residential investments (question 14), particularly in terms of affordability, and/or major 

purchases of durable consumer goods (question 15). 

Cost of funds and balance sheet constraints  

A  bank’s  capital  and  the  costs  related  to  its  capital  position  can  become  a  balance  sheet 

constraint that may inhibit the expansion of its lending. For a given level of capital, the bank’s 

loan supply could be affected by its liquidity position and its access to money and debt markets. 

Similarly, a bank could abstain from granting a loan, or be less willing to lend, if it knows that it 

The euro area bank lending survey / January 2014 

24 

 
 
 
 
 
will  not  be  able  subsequently  to  transfer  the  risk  (synthetic  securitisation)  or  the  entire  asset 

(true-sale securitisation) off its balance sheet. 

Covenant 

An agreement or stipulation laid down in loan contracts, particularly contracts with enterprises, 

under which the borrower pledges either to take certain action (an affirmative covenant), or to 

refrain from taking certain action (a negative covenant); this is consequently part of the terms 

and conditions of the loan. 

Credit line 

A facility with a stated maximum amount that an enterprise is entitled to borrow from a bank at 

any given time. For the purposes of the survey, developments regarding credit lines should be 

interpreted as changes in the net amount that can be drawn down under either an existing or a 

new credit line. 

Credit standards 

The internal guidelines or criteria that reflect a bank’s lending policy. They are the written and 

unwritten criteria, or other practices related to this policy, which define the types of loan a bank 

considers  desirable  and  undesirable,  its  designated  geographical  priorities,  collateral  deemed 

acceptable or unacceptable, etc. For the purposes of the survey, changes in written loan policies, 

together with changes in their application, should be reported. 

Credit terms and conditions 

These  refer  to  the  specific  obligations  agreed  upon  by  the  lender  and  the  borrower.  In  the 

context of the bank lending survey, they consist of the direct price or interest rate, the maximum 

size of the loan and the access conditions, and other terms and conditions in the form of non-

interest rate charges (i.e. fees), collateral requirements (including compensating balances), loan 

covenants and maturities (short-term versus long-term). 

Debt restructuring 

Debt  restructuring  is  a  relevant  factor  in  the  context  of  the  bank  lending  survey  only  to  the 

extent  that  it  gives  rise  to  an  actual  increase  or  decrease  in  demand  for  loans  following  the 

The euro area bank lending survey / January 2014 

25 

 
 
 
 
 
 
decision of corporations with outstanding debt obligations to alter the terms and conditions of 

these loans. Generally, companies use debt restructuring to avoid defaulting on existing debt or 

to take advantage of lower interest rates or lower interest rate expectations. In the context of this 

survey, debt restructuring should not be interpreted as the switching between different types of 

debt (such as MFI loans and debt securities; this is already captured under the item “Issuance of 

debt securities”), capital restructuring (substitution between debt and equity) or share buy-backs 

(already captured under the item “Issuance of equity”). Debt restructuring in the form of inter-

company  loans  is  already  covered  by  the  item  “Loans  from  non-banks”.  Moreover,  debt 

restructuring in the form of a substitution between short-term and long-term loans does not give 

rise to a change in overall loan demand. 

Diffusion index 

The diffusion index is defined as the difference between the weighted sum of the percentages of 

banks responding “tightened considerably” and “tightened somewhat”, and the weighted sum of 

the  percentages  of  banks  responding  “eased  considerably”  and  “eased  somewhat”.  Regarding 

demand for loans, the diffusion index is defined as the difference between the weighted sum of 

the percentages of banks responding “increased considerably” and “increased  somewhat”, and 

the  weighted  sum  of  the  percentages  of  banks  responding  “decreased  considerably”  and 

“decreased  somewhat”.  The  diffusion  index  is  weighted  according  to  the  intensity  of  the 

response, giving lenders who have answered “considerably” a weight twice as high (score of 1) 

as lenders having answered “somewhat” (score of 0.5). 

Enterprises 

The  term  “enterprises”  denotes  non-financial  corporations,  i.e.  all  private  and  public 

institutional units, irrespective of their size and legal form, which are not principally engaged in 

financial intermediation but rather in the production of goods and non-financial services. 

Enterprise size 

The distinction between large enterprises  and small  and  medium-sized  enterprises is based  on 

annual  sales.  An  enterprise  is  considered  large  if  its  annual  net  turnover  is  more  than  €50 

million. 

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Households 

Individuals  or  groups  of  individuals  acting  as  consumers  or  as  producers  of  goods  and  non-

financial services exclusively intended for their own final consumption, as well as small-scale 

market producers.  

Housing market prospects  

In question 9, (besides interest rate developments) “housing market prospects” refers to the risk 

on  the  collateral  demanded;  in  question  14,  it  includes  households’  expectations  regarding 

changes in house prices. 

Loans 

The  loans  covered  by  the  bank  lending  survey  are  those  granted  to  euro  area  residents  by 

domestic bank branches, and include loans or credit lines to enterprises, loans to households for 

house purchase, and consumer credit and other lending to households. 

Loan-to-value ratio 

The ratio of the amount borrowed to the appraisal or market value of the underlying collateral, 

usually employed in relation to loans used for real estate financing.  

Maturity 

Maturity as used in the bank lending survey is original maturity, and only two types are used: 

short-term  and  long-term.  Short-term  loans  are  loans  with  an  original  maturity  of  one  year  or 

less; long-term loans have an original maturity of more than one year. 

Net percentage (or balance) 

In  the  context  of  credit  standards,  the  net  percentage  is  defined  as  the  difference  between  the 

sum  of  the  percentages  of  banks  responding  “tightened  considerably”  and  “tightened 

somewhat”,  and  the  sum  of  the  percentages  of  banks  responding  “eased  considerably”  and 

“eased somewhat”. Regarding demand for loans, the net percentage is defined as the difference 

between  the  sum  of  the  percentages  of  banks  responding  “increased  considerably”  and 

“increased  somewhat”,  and  the  sum  of  the  percentages  of  banks  responding  “decreased 

considerably” and “decreased somewhat”. 

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Non-banks 

In  general,  these  consist  of  non-monetary  financial  corporations,  in  particular  insurance 

corporations and pension funds, financial auxiliaries and other financial intermediaries. 

Non-interest rate charges 

Various kinds of fees that can form part of the pricing of a loan, such as commitment fees on 

revolving  loans,  administration  fees  (e.g.  document  preparation  costs),  and  charges  for 

enquiries, guarantees and credit insurance. 

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