The euro area bank lending survey. Third quarter of 2018.
Date: 2018-03-03
Institutions: European Central Bank
Subjects: European Central Bank, bank, economic analysis, euro area, loan, serial publication

The euro area 
bank lending survey 

Third quarter of 2018 

October 2018 

 
 
Contents 

Introduction 

1 

2 

Overview of results 

Box 1  General notes 

Developments in credit standards, terms and conditions, and net 
demand for loans in the euro area 

2.1 

2.2 

Loans to enterprises 

Loans to households for house purchase 

2.3  Consumer credit and other lending to households 

3 

Ad hoc questions 

3.1  Banks’ access to retail and wholesale funding 

3.2 

3.3 

The impact of the ECB’s asset purchase programme 

The impact of the ECB’s negative deposit facility rate 

Annex 1 Results for the standard questions 

Annex 2 Results for the ad hoc questions 

2 

3 

5 

8 

8 

13 

18 

24 

24 

25 

29 

A1 

A24 

The euro area bank lending survey – Third quarter of 2018 

1 

Introduction 

The results reported in the October 2018 bank lending survey (BLS) relate to 
changes observed during the third quarter of 2018 and expectations for the fourth 
quarter of 2018. The survey was conducted between 14 September and 1 October 
2018. The response rate was 100%. In addition to results for the euro area as a 
whole, this report also contains results for the five largest euro area countries.1 

A number of ad hoc questions were included in the October 2018 survey. These 
looked at the impact that the situation in financial markets was having on banks’ 
access to retail and wholesale funding, the impact of the ECB’s asset purchase 
programme and the impact of the ECB’s negative deposit facility rate. 

1   The five largest euro area countries in terms of gross domestic product are Germany, France, Italy, 

Spain and the Netherlands. 

The euro area bank lending survey – Third quarter of 2018 

2 

                                                                    
1 

Overview of results 

According to the October 2018 bank lending survey, credit standards eased further 
for loans to enterprises in the third quarter of 2018 and demand increased across all 
loan categories. This lent further support to loan growth, especially in the case of 
loans to enterprises. 

Credit standards (i.e. banks’ internal guidelines or loan approval criteria) for loans to 
enterprises eased further in the third quarter of 2018 (with the net percentage of 
banks standing at -6%, compared with -3% in the second quarter; see overview 
table), with that net easing exceeding banks’ expectations in the previous survey 
round. Meanwhile, credit standards on loans to households for house purchase 
eased slightly (with a net percentage of -2%, compared with -8% in the second 
quarter), following a considerable easing since the first quarter of 2017. However, 
that net easing was weaker than had been expected in the previous survey round. 
Credit standards on consumer credit and other lending to households remained 
broadly unchanged (with a net percentage of 1%, compared with -3% in the previous 
round), despite expectations of easing in the previous round. For the fourth quarter 
of 2018, banks expect broadly unchanged credit standards for loans to enterprises 
(-1%) and an easing of credit standards for housing loans (-5%) and consumer credit 
(-3%). 

For loans to enterprises, competitive pressures and lower risk perceptions were the 
main factors contributing to an easing of credit standards. Those two factors also 
contributed to an easing of credit standards on housing loans, albeit less so than in 
the second quarter of 2018. Meanwhile, banks’ cost of funds and balance sheet 
constraints had a broadly neutral impact on credit standards for loans to enterprises 
and housing loans. For consumer credit and other lending to households, 
competition had a slight easing impact, while banks’ cost of funds and balance sheet 
constraints had a slight tightening impact on credit standards. 

Banks’ overall terms and conditions (i.e. the actual terms and conditions agreed in 
loan contracts) for new loans to enterprises continued to ease in the third quarter of 
2018, driven by a narrowing of margins on average loans (defined as the spread 
over relevant market reference rates), while margins on riskier loans remained 
unchanged. For new housing loans, euro area banks’ overall terms and conditions 
eased slightly, while for consumer credit and other lending to households, euro area 
banks’ overall terms and conditions remained unchanged. For both categories of 
loans to households, margins on average loans narrowed in the third quarter of 
2018. However, margins on riskier loans narrowed for housing loans, but remained 
broadly unchanged for consumer credit. 

The net percentage share of rejected loan applications remained broadly unchanged 
for loans to enterprises, increased for housing loans and decreased for consumer 
credit and other lending to households. 

Net demand for loans to enterprises increased in the third quarter of 2018 (12%, 
compared with 16% in the second quarter; see overview table), but was weaker than 

The euro area bank lending survey – Third quarter of 2018 

3 

had been expected in the previous survey round. Banks expect net demand to 
continue to increase in the fourth quarter of 2018 (11%). Net demand also continued 
to increase for housing loans (5%, compared with 23% in the second quarter) and 
consumer credit (22%, compared with 25% in the previous quarter). For the fourth 
quarter of 2018, banks expect to see continued increases in net demand for both 
housing loans (18%) and consumer credit (15%). 

The net increase in demand for loans to enterprises was driven by the low general 
level of interest rates, fixed investment, inventories and working capital, and merger 
and acquisition (M&A) activity. Meanwhile, net demand for housing loans continued 
to be driven mainly by the low general level of interest rates, favourable housing 
market prospects and consumer confidence. For consumer credit and other lending 
to households, the low general level of interest rates and consumer confidence were 
also important contributing factors, as was spending on durable goods. 

Credit standards on loans to enterprises eased in all of the largest euro area 
countries in the third quarter of 2018, with the exception of France, where they 
remained unchanged (see overview table). For housing loans, credit standards were 
eased in Germany, France and the Netherlands, but remained unchanged in Spain 
and Italy. Meanwhile, net demand for loans to enterprises increased in all of the 
largest euro area countries in the third quarter of 2018, with the exception of Spain, 
where it declined. For housing loans, net demand increased in all major countries 
except France. 

Overview table 
Latest developments in BLS results in the largest euro area countries 

(net percentages of banks reporting tightening credit standards or positive loan demand) 

Enterprises 

House purchase 

Consumer credit 

Credit standards 

Demand 

Credit standards 

Demand 

Credit standards 

Demand 

Country 

Euro area 

Germany 

18 
Q2 

18 
Q3  Avg. 

18 
Q2 

18 
Q3  Avg. 

18 
Q2 

18 
Q3  Avg. 

18 
Q2 

18 
Q3  Avg. 

18 
Q2 

18 
Q3  Avg. 

18 
Q2 

18 
Q3  Avg. 

-3 

-3 

-6 

-3 

9 

4 

16  12 

-2 

25  10 

4 

-8 

-7 

-2 

-3 

6 

2 

23 

21 

5 

3 

4 

8 

-3 

-3 

1 

3 

4 

25  22 

1 

-1 

38 

6 

10 

Spain 

-10 

-10 

10 

0 

-20 

-3 

-11 

0 

15 

22  22 

-9 

-20 

-10 

6 

60  40 

-7 

France 

0 

0 

6 

-3 

4 

-10 

-2 

-2 

Italy 

-10 

-10 

14 

10  30 

4 

0 

0 

2 

1 

17 

-22 

8 

20  10 

15 

Netherlands 

0 

-26 

10 

45  43 

-1 

-50 

-34 

13 

51  49 

-1 

0 

0 

0 

0 

0 

0 

-1 

14  36 

0 

7 

30  20 

15 

13 

-18  32 

-16 

Notes: The “Avg.” columns contain historical averages, which are calculated over the period since the beginning of the survey, 
excluding the most recent round. For France and the Netherlands, net percentages are weighted on the basis of outstanding loan 
amounts for individual banks in the respective national samples. 

The October 2018 BLS also included a number of ad hoc questions. As regards euro 
area banks’ access to wholesale funding, banks reported in net terms that access to 
money markets and debt securities issuance had deteriorated in the third quarter of 
2018, while access to securitisation had improved. As regards retail funding, banks 
indicated broadly unchanged access. 

As regards the impact of the ECB’s asset purchase programme (APP), euro area 
BLS banks again reported a positive impact on their liquidity positions and market 
financing conditions over the past six months, as well as a negative impact on their 
profitability. The APP had an easing impact on terms and conditions and a neutral 

The euro area bank lending survey – Third quarter of 2018 

4 

  
  
impact on credit standards over the past six months, as well as a positive impact on 
banks’ lending volumes (albeit less so than in the previous reporting period). 

Although it is having a negative impact on banks’ net interest income, banks report 
that the ECB’s negative deposit facility rate is having a positive impact on their 
lending volumes and has contributed to lower lending rates over the past six months. 

Box 1 
General notes 

The bank lending survey (BLS) is addressed to senior loan officers at a representative sample of 
euro area banks. In the current survey round, 147 banks participated in the survey, representing all 
euro area countries and reflecting the characteristics of their respective national banking structures. 
The main purpose of the BLS is to enhance the Eurosystem’s knowledge of bank lending conditions 
in the euro area. 2 

BLS questionnaire 

The BLS questionnaire contains 22 standard questions on past and expected future developments: 
18 backward-looking questions and four forward-looking questions. In addition, it contains one 
open-ended question. Those questions focus on developments in loans to euro area residents (i.e. 
domestic and euro area cross-border loans) and distinguish between three loan categories: 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 about the credit standards 
applied to the approval of loans, the terms and conditions of new loans, loan demand, the factors 
affecting loan supply and demand conditions, and the percentage of loan applications that are 
rejected. Survey questions are generally phrased in terms of changes over the past three months or 
expected changes over the next three months. Survey participants are asked to indicate in a 
qualitative way the strength of any tightening or easing or the strength of any decrease or increase, 
reporting changes using the following five-point scale: (1) tightened/decreased considerably, (2) 
tightened/decreased somewhat, (3) basically no change, (4) eased/increased somewhat or (5) 
eased/increased considerably. 

In addition to the standard questions, the BLS questionnaire may contain ad hoc questions on 
specific topics of interest. Whereas the standard questions cover a three-month time period, the ad 
hoc questions tend to refer to changes over a longer time period (e.g. over the past and next six 
months). 

Aggregation of banks’ replies to national and euro area BLS results 

The responses of the individual banks participating in the BLS are aggregated in two steps. In the 
first step, the responses of individual banks are aggregated to form national results for euro area 
countries. And in the second step, those national BLS results are aggregated to form euro area BLS 
results.  

2   For more detailed information on the bank lending survey, see the article entitled “A bank lending 

survey for the euro area”, Monthly Bulletin, ECB, April 2003; and Köhler-Ulbrich, P., Hempell, H. and 
Scopel, S., “The euro area bank lending survey”, Occasional Paper Series, No 179, ECB, 2016. 

The euro area bank lending survey – Third quarter of 2018 

5 

 
                                                                    
In the first step, banks’ replies can be aggregated to form national BLS results by applying equal 
weights to all banks in the sample 3 or, alternatively, by applying a weighting scheme based on 
outstanding loans to non-financial corporations and households for the individual banks in the 
respective national samples. Specifically, for France, Malta, the Netherlands and Slovakia, an 
explicit weighting scheme is applied. 

In the second step, since the numbers of banks in the national samples differ considerably and do 
not always reflect those countries’ respective shares of lending to euro area non-financial 
corporations and households, the national survey results are aggregated to form euro area BLS 
results by applying a weighting scheme based on national shares of outstanding loans to euro area 
non-financial corporations and households. 

BLS indicators 

Responses to questions related to credit standards are analysed in this report by looking at the 
difference (the “net percentage”) between the percentage of banks reporting that credit standards 
applied in the approval of loans have been tightened and the percentage of banks reporting that 
they have been eased. For all questions, the net percentage is determined on the basis of all 
participating banks that have business in or exposure to the respective loan categories (i.e. they are 
all included in the denominator when calculating the net percentage). This means that banks that 
specialise in certain loan categories (e.g. banks that only grant loans to enterprises) are only 
included in the aggregation for those categories. All other participating banks are included in the 
aggregation of all questions, even if a bank replies that a question is “not applicable” (“NA”). This 
harmonised aggregation method was introduced by the Eurosystem in the April 2018 BLS. It has 
been applied to all euro area and national BLS results in the current BLS questionnaire, including 
backdata.4 The resulting revisions for the standard BLS questions have generally been small, but 
revisions for some ad hoc questions have been larger owing to a higher number of “not applicable” 
replies by banks. 

A positive net percentage indicates that a larger proportion of banks have tightened credit standards 
(“net tightening”), whereas a negative net percentage indicates that a larger proportion of banks 
have eased credit standards (“net easing”). 

Likewise, the term “net demand” refers to the difference between the percentage of banks reporting 
an increase in loan demand (i.e. an increase in bank loan financing needs) and the percentage of 
banks reporting a decline. Net demand will therefore be positive if a larger proportion of banks have 
reported an increase in loan demand, whereas negative net demand indicates that a larger 
proportion of banks have reported a decline in loan demand. 

In the assessment of survey balances for the euro area, net percentages between -1 and +1 are 
generally referred to as “broadly unchanged”. For the country results, net percentage changes are 
reported in a factual manner, as differing sample sizes across countries mean that the answers of 
individual banks have differing impacts on the magnitude of net percentage changes. 

In addition to the “net percentage” indicator, the ECB also publishes an alternative measure of 
banks’ responses to questions related to changes in credit standards and net demand. This 

3  

In this case, the selected sample banks are generally of similar size or their lending behaviour is typical 
of a larger group of banks. 

4   The non-harmonised historical data differ from the harmonised data mainly as a result of 

heterogeneous treatment of “NA” replies and specialised banks across questions and countries. Non-
harmonised historical BLS data are published for discontinued BLS questions and ad hoc questions. 

The euro area bank lending survey – Third quarter of 2018 

6 

                                                                    
measure is the weighted difference (“diffusion index”) between the percentage of banks reporting 
that credit standards have been tightened and the percentage of banks reporting that they have 
been eased. Likewise, as regards demand for loans, the diffusion index refers to the weighted 
difference between the percentage of banks reporting an increase in loan demand and the 
percentage of banks reporting a decline. The diffusion index is constructed in the following way: 
lenders who have answered “considerably” are given a weight (score of 1) twice as high 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 based on the responses provided can be found in Annex 1 for the 
standard questions and Annex 2 for the ad hoc questions. In addition, BLS time series data are 
available on the ECB’s website via the Statistical Data Warehouse.  

A copy of the questionnaire, a glossary of BLS terms and a BLS user guide with information on the 
BLS series keys can all be found at: 
http://www.ecb.europa.eu/stats/money/surveys/lend/html/index.en.html 

The euro area bank lending survey – Third quarter of 2018 

7 

 
2 

Developments in credit standards, 
terms and conditions, and net demand 
for loans in the euro area 

2.1 

Loans to enterprises 

2.1.1 

Credit standards for loans to enterprises ease further 

Credit standards (i.e. banks’ internal guidelines or loan approval criteria) for loans to 
enterprises eased further in the third quarter of 2018 (with the net percentage of 
banks standing at -6%, compared with -3% in the previous quarter; see Chart 1 and 
overview table). That net easing was stronger than had been expected in the 
previous survey round, and the net percentage remained below the historical 
average since 2003. Credit standards eased for both loans to small and medium-
sized enterprises (-4%) and loans to large firms (-7%). 

Chart 1 
Changes in credit standards applied to the approval of loans or credit lines to 
enterprises, and contributing factors 

(net percentages of banks reporting tightening credit standards and contributing factors) 

credit standards - actual
credit standards - expected

banks' risk tolerance
risk perceptions
competition
cost of funds and balance sheet constraints

10

5

0

-5

-10

-15

-20

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

8
1
0
2

4
Q

20

10

0

-10

-20

-30

-40

-50

20

10

0

-10

-20

-30

-40

-50

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

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 contributing 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. “Cost of funds and balance 
sheet constraints” is the unweighted average of “costs related to capital position”, “access to market financing” and “liquidity position”; 
“risk perceptions” is the unweighted average of “general economic situation and outlook”, “industry or firm-specific situation and 
outlook/borrower’s creditworthiness” and “risk related to the collateral demanded”; “competition” is the unweighted average of 
“competition from other banks”, “competition from non-banks” and “competition from market financing”. 

Banks reported that competitive pressure (particularly from other banks) and lower 
risk perceptions relating to the general economic situation and borrowers’ 
creditworthiness were the main factors contributing to an easing of credit standards. 

The euro area bank lending survey – Third quarter of 2018 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In contrast, banks’ cost of funds, balance sheet constraints and tolerance of risk had 
a broadly neutral impact on credit standards (see Chart 1 and Table 1).5 

Credit standards on loans to enterprises eased in all of the largest euro area 
countries in the third quarter of 2018, with the exception of France, where they 
remained unchanged. In line with this development, competition contributed to an 
easing of credit standards in all countries except France. In addition, lower risk 
perceptions relating to the economic situation and borrowers’ creditworthiness had 
an easing impact in Italy and the Netherlands, a broadly neutral impact in Germany 
and Spain, and a slight tightening impact in France. Banks in Spain also reported 
that their tolerance of risk had contributed to a net easing of credit standards on 
loans to enterprises in the third quarter. Finally, banks’ cost of funds and balance 
sheet constraints had a neutral effect in all major euro area countries. 

Looking ahead to the fourth quarter of 2018, euro area banks expect broadly 
unchanged credit standards for loans to enterprises (-1%). 

Table 1 
Factors contributing to the net tightening of credit standards for loans or credit lines 
to enterprises 

(net percentages) 

Cost of funds and 
balance sheet 
constraints 

Pressure from 
competition 

Perception of risk 

Banks' risk tolerance 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-1 

0 

0 

0 

-3 

0 

0 

0 

0 

0 

0 

0 

-7 

-5 

0 

-4 

-10 

-17 

-5 

-3 

-3 

0 

-7 

-17 

-4 

0 

-10 

3 

-10 

-17 

-3 

-1 

0 

3 

-10 

-26 

-1 

0 

-10 

0 

0 

0 

-1 

0 

-10 

0 

0 

0 

Note: See the notes accompanying Chart 1. 

2.1.2 

Terms and conditions for loans to enterprises continue to ease 

In the third quarter of 2018, the overall terms and conditions that banks apply when 
granting new loans or credit lines to enterprises (i.e. the actual terms and conditions 
agreed in loan contracts) continued to ease (see Chart 2 and Table 2). That net 
easing was driven mainly by a narrowing of margins on average loans to enterprises, 
whereas margins on riskier loans remained unchanged. As regards other terms and 
conditions, banks reported that the size of the loan or credit line and loan covenants 
both contributed to an easing, while collateral requirements, non-interest charges 
and loan maturities had a broadly neutral impact in the third quarter. 

5   The calculation of a simple average when combining factors in broader categories assumes that all 
factors have the same importance for the banks. This partly explains some inconsistencies in the 
respective charts between developments in credit standards and developments in the main underlying 
factor categories. 

The euro area bank lending survey – Third quarter of 2018 

9 

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

(net percentages of banks reporting tightening terms and conditions) 

overall terms and conditions

margins on average loans
collateral requirements

margins on riskier loans
other terms and conditions

10

0

-10

-20

-30

-40

-50

40

0

-40

-80

-120

-160

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

40

0

-40

-80

-120

-160

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

Notes: “Margins” are defined as the spread over a relevant market reference rate. “Other terms and conditions” is the unweighted 
average of “non-interest rate charges”, “size of the loan or credit line”, “loan covenants” and “maturity”.  

Looking at the largest euro area countries, overall terms and conditions on new 
loans or credit lines to enterprises eased in Germany, Spain and the Netherlands. 
This was mainly related to a further narrowing of margins on average loans. In 
contrast, overall terms and conditions remained unchanged in France, and they were 
tightened in Italy (mainly as a result of a widening of margins on riskier loans). 

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

(net percentages) 

Overall terms and conditions 

Banks' margins on average 
loans 

Banks' margins on riskier 
loans 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-16 

-9 

-30 

-13 

-20 

-26 

-7 

-10 

-20 

0 

10 

-26 

-27 

-19 

-30 

-31 

-30 

-26 

-13 

-16 

-10 

0 

-20 

-26 

-4 

-6 

10 

-12 

0 

0 

0 

-6 

0 

0 

10 

0 

Note: See the notes accompanying Chart 2. 

As regards the factors contributing to changes in overall terms and conditions, 
competition continued to be the main factor contributing to an easing. Risk 
perceptions also had a slight easing impact, while banks’ cost of funds and balance 
sheet constraints had a slight tightening impact (see Table 3). 

Across the largest euro area countries, competitive pressures continued to be the 
main factor driving easing of terms and conditions (with the exception of the 
Netherlands, where the impact was neutral). In addition, banks in Italy reported that 
their cost of funds and balance sheet constraints were having a tightening impact 
and risk perceptions were having an easing impact. 

The euro area bank lending survey – Third quarter of 2018 

10 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 3 
Factors contributing to the net tightening of terms and conditions for loans or credit 
lines to enterprises 

(net percentages of banks reporting tightening terms and conditions) 

Cost of funds and 
balance sheet 
constraints 

Pressure from 
competition 

Perception of risk 

Banks' risk tolerance 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-3 

0 

-10 

0 

-10 

0 

3 

0 

0 

0 

10 

0 

-26 

-22 

-20 

-28 

-50 

0 

-16 

-16 

-10 

-10 

-40 

0 

-2 

0 

-10 

0 

-20 

26 

-3 

0 

0 

0 

-20 

0 

-1 

0 

-10 

0 

0 

0 

-1 

0 

-10 

0 

0 

0 

Note: The net percentages for these questions relating to contributing 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. 

2.1.3 

Rejection rate for loans to enterprises remains broadly unchanged 

The net percentage share of rejected loan applications (i.e. the difference between 
the percentage of banks reporting an increase in the share of loan rejections and the 
percentage of banks reporting a decline) remained broadly unchanged for loans to 
euro area enterprises in the third quarter of 2018 (standing at 1%, compared with 2% 
in the previous quarter; see Chart 3). 

Chart 3 
Change in the share of rejected applications for loans to enterprises 

(net percentages of banks reporting an increase in the share of rejections) 

Q4 2017
Q1 2018

Q2 2018
Q3 2018

30

20

10

0

-10

-20

-30

-40

euro area

DE

ES

FR

IT

NL

Note: Share of loan rejections relative to the volume of all loan applications in that loan category. 

Looking at the largest euro area countries, rejection rates declined in Italy, increased 
in the Netherlands, and remained unchanged in Germany, Spain and France. 

The euro area bank lending survey – Third quarter of 2018 

11 

  
 
2.1.4 

Increase in net demand for loans to enterprises 

Net demand for loans to enterprises continued to increase in the third quarter of 
2018 (with the net percentage of banks standing at 12%, compared with 16% in the 
previous quarter; see Chart 4 and overview table). This was above the historical 
average, but less than banks had expected in the previous round. Banks reported 
increased demand for loans to both small and medium-sized enterprises and large 
firms. 

Looking at the largest euro area countries, net demand for loans to enterprises 
increased in Germany, France, Italy and the Netherlands, but it decreased in Spain. 

Chart 4 
Changes in demand for loans or credit lines to enterprises, and contributing factors 

(net percentages of banks reporting an increase in demand and contributing factors) 

demand - actual
demand - expected

fixed investment
general level of interest rates
use of alternative finance

inventories and working capital
other financing needs

60

50

40

30

20

10

0

-10

175

150

125

100

75

50

25

0

-25

-50

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

8
1
0
2

4
Q

175

150

125

100

75

50

25

0

-25

-50

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

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 contributing factors 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. “Other financing needs” is the unweighted average of “M&A and corporate restructuring” and “debt 
refinancing/restructuring and renegotiation”; “use of alternative finance” is the unweighted average of “internal financing”, “loans from 
other banks”, “loans from non-banks”, “issuance/redemption of debt securities” and “issuance/redemption of equity”.  

The net increase in demand for loans to enterprises was mainly driven by the low 
general level of interest rates, fixed investment, inventories and working capital, and 
M&A activity (included in “other financing needs”; see Chart 4 and Table 4). Debt 
refinancing/restructuring leading to an increase or prolongation of the amount 
borrowed (included in “other financing needs”) also continued to have a positive 
impact on demand. Firms’ internal financing, loans from non-banks and the issuance 
of debt securities (all included in “use of alternative finance”) had a small negative 
impact on firms’ loan demand, according to reporting banks.6 

6   The calculation of a simple average when combining factors in broader categories assumes that all 
factors have the same importance for the banks. This partly explains some inconsistencies between 
developments in demand for loans and developments in the main underlying factor categories. 

The euro area bank lending survey – Third quarter of 2018 

12 

 
                                                                    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 4 
Factors contributing to net demand for loans or credit lines to enterprises 

(net percentages) 

Fixed investment 

Inventories and 
working capital 

Other financing 
needs  

General level of 
interest rates 

Use of alternative 
finance 

Country 

Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

6 

13 

-20 

-13 

0 

42 

12 

19 

-20 

-13 

20 

43 

15 

6 

30 

-3 

40 

19 

10 

0 

20 

0 

10 

43 

11 

8 

-10 

9 

15 

27 

8 

-2 

-5 

11 

0 

43 

22 

16 

30 

12 

50 

26 

18 

10 

20 

10 

40 

26 

-1 

-7 

0 

-1 

4 

6 

-2 

-7 

-6 

-1 

-2 

5 

Note: See the notes accompanying Chart 4. 

The low general level of interest rates supported loan demand in all of the largest 
euro area countries. Fixed investment supported loan demand in Germany, Italy and 
the Netherlands, while it dampened loan demand in Spain and France. At the same 
time, inventories and working capital had a positive impact in Spain, Italy and the 
Netherlands. A positive impact from M&A activity was reported by some banks 
(mainly in France and the Netherlands), while banks also reported (particularly in 
Germany and Spain) that the availability of internal funds had a dampening impact 
on loan demand in the third quarter of 2018. 

For the fourth quarter of 2018, banks expect a continued increase in demand for 
loans to enterprises (net percentage of 11%). 

2.2 

Loans to households for house purchase 

2.2.1 

Credit standards for loans to households for house purchase ease 
slightly 

Credit standards on loans to households for house purchase eased slightly in the 
third quarter of 2018 (with the net percentage of banks standing at -2%, compared 
with -8% in the previous quarter; see Chart 5 and overview table), following a 
considerable easing since the first quarter of 2017. That net easing was weaker than 
had been expected in the previous survey round, but the net percentage remained 
below the historical average observed since 2003. 

Looking at the largest euro area countries, banks in Germany, France and the 
Netherlands generally reported a slight easing of the credit standards applied to 
housing loans, while banks in Italy and Spain reported unchanged credit standards. 

The euro area bank lending survey – Third quarter of 2018 

13 

  
Chart 5 
Changes in credit standards applied to the approval of loans to households for house 
purchase, and contributing factors 

(net percentages of banks reporting tightening credit standards and contributing factors) 

credit standards - actual
credit standards - expected

5

0

-5

-10

-15

-20

-25

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

8
1
0
2

4
Q

15

0

-15

-30

-45

-60

-75

-90

banks' risk tolerance
risk perceptions
competition
cost of funds and balance sheet constraints
other factors

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

15

0

-15

-30

-45

-60

-75

-90

Notes: See the notes accompanying Chart 1. “Risk perceptions” is the unweighted average of “general economic situation and 
outlook”, “housing market prospects, including expected house price developments” and “borrower’s creditworthiness”; “competition” is 
the unweighted average of “competition from other banks” and “competition from non-banks”. “Other factors” are provided by banks 
when none of the above factors are applicable. They are shown as memo items and refer here, in particular, to changes in the 
regulations and legislation governing housing markets. 

Competitive pressure from other banks and non-banks and lower risk perceptions 
relating to the general economic situation and housing market prospects both 
contributed to the net easing of credit standards on housing loans. In contrast, 
banks’ tolerance of risk, cost of funds and balance sheet constraints had a broadly 
neutral impact at the euro area level (see Chart 5 and Table 5). 

Looking at the largest euro area countries, banks in Germany and the Netherlands 
reported that competitive pressures were having an easing impact, while the impact 
was neutral in the other three countries. Banks’ cost of funds and balance sheet 
constraints had a tightening impact in Italy, but a broadly neutral impact in most other 
large countries. Risk perceptions contributed to an easing of credit standards in the 
Netherlands, and banks’ tolerance of risk had a slight easing impact in the 
Netherlands and France. 

Looking ahead, euro area banks expect that credit standards for housing loans will 
ease (-5%) in the fourth quarter of 2018. 

The euro area bank lending survey – Third quarter of 2018 

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 5 
Factors contributing to the net tightening of credit standards for loans to households 
for house purchase 

(net percentages) 

Cost of funds and 
balance sheet 
constraints 

Pressure from 
competition 

Perception of risk 

Banks' risk tolerance 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

0 

0 

0 

-1 

0 

0 

1 

0 

0 

0 

10 

-2 

-7 

-5 

-6 

0 

0 

-5 

-5 

0 

0 

0 

-4 

0 

-11 

0 

0 

-3 

1 

0 

0 

0 

-48 

-34 

-32 

-34 

-1 

-3 

0 

-2 

0 

0 

0 

0 

0 

-2 

0 

-2 

Note: See the notes accompanying Chart 5. 

2.2.2 

Terms and conditions for loans to households for house purchase 
ease slightly 

Banks’ overall terms and conditions for new loans to households for house purchase 
eased slightly in the third quarter of 2018 (see Chart 6 and Table 6), mainly owing to 
a further narrowing of margins on average and riskier loans (albeit less so than in the 
previous quarter). Most other terms and conditions, like collateral requirements, 
remained broadly unchanged at the euro area level. 

Chart 6 
Changes in terms and conditions for loans to households for house purchase 

(net percentages of banks reporting tightening terms and conditions) 

10

0

-10

-20

-30

-40

-50

overall terms and conditions

30

0

-30

-60

-90

-120

-150

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

margins on average loans
collateral requirements

margins on riskier loans
other terms and conditions

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

30

0

-30

-60

-90

-120

-150

Notes: “Margins” are defined as the spread over a relevant market reference rate. “Other terms and conditions” is the unweighted 
average of “loan-to-value ratio”, “other loan size limits”, “non-interest rate charges” and “maturity”.  

Looking at the largest euro area countries, banks in Germany and the Netherlands 
reported a net easing of overall terms and conditions, while banks in France and Italy 
reported a net tightening. In addition, banks in all large countries except Spain 

The euro area bank lending survey – Third quarter of 2018 

15 

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
reported a narrowing of margins on average loans. Margins on riskier loans 
narrowed in Germany and the Netherlands, but widened in France and Italy. 

Table 6 
Changes in terms and conditions for loans to households for house purchase 

(net percentages) 

Overall terms and conditions 

Banks' margins on average 
loans 

Banks' margins on riskier 
loans 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-9 

-7 

-11 

-14 

-20 

-2 

-2 

-7 

0 

7 

10 

-34 

-30 

-21 

-11 

-38 

-40 

-48 

-16 

-17 

0 

-14 

-20 

-13 

-9 

-10 

0 

6 

0 

-83 

-5 

-3 

0 

7 

10 

-84 

Note: See the notes accompanying Chart 6. 

Competitive pressure was the main contributor to the easing of overall terms and 
conditions on housing loans at the euro area level (see Table 7). 

This was true in all of the largest euro area countries. In addition, risk perceptions 
had an easing impact in the Netherlands, while they had a tightening impact in 
France. Banks’ cost of funds and balance sheet constraints had an easing impact in 
Germany, but a tightening impact in Italy. 

Table 7 
Factors contributing to the net tightening of terms and conditions for loans to 
households for house purchase 

(net percentages) 

Cost of funds and 
balance sheet 
constraints 

Pressure from 
competition 

Perception of risk 

Banks' risk tolerance 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

0 

0 

0 

-1 

0 

0 

0 

-3 

0 

0 

10 

0 

-19 

-17 

-11 

-15 

-20 

-48 

-18 

-10 

-11 

-16 

-10 

-51 

-5 

0 

-11 

0 

0 

-2 

0 

0 

7 

0 

-34 

-34 

-1 

-3 

0 

0 

0 

0 

-1 

0 

0 

0 

0 

-2 

Note: The net percentages for these questions relating to contributing 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. 

2.2.3 

Rejection rate for housing loans increases 

According to euro area banks, the net percentage share of rejected applications for 
loans to households for house purchase increased in the third quarter of 2018 
(standing at 3%, up from 0% in the previous survey round; see Chart 7). 

The euro area bank lending survey – Third quarter of 2018 

16 

  
  
Chart 7 
Change in the share of rejected applications for loans to households for house 
purchase 

(net percentages of banks reporting an increase in the share of rejections) 

Q4 2017
Q1 2018

Q2 2018
Q3 2018

40

30

20

10

0

-10

-20

-30

euro area

DE

ES

FR

IT

NL

Note: Share of loan rejections relative to the volume of all loan applications in that loan category.  

Looking at the largest euro area countries, rejection rates for housing loans 
increased in Germany and the Netherlands, decreased in Spain and Italy, and 
remained unchanged in France. 

2.2.4 

Net demand for housing loans increases 

In the third quarter of 2018, banks reported an increase in net demand for housing 
loans (with the net percentage of banks standing at 5%, compared with 23% in the 
second quarter; see Chart 8 and overview table). Although this was weaker than 
banks had expected in the previous survey round, it was around the historical 
average for housing loan demand. 

Looking at the largest euro area countries, net demand increased in all countries 
except France. 

Net demand for housing loans continued to be driven by the low general level of 
interest rates, favourable housing market prospects and consumer confidence, while 
the use of alternative sources of finance (mainly loans from other banks) had a slight 
dampening effect on demand (see Chart 8 and Table 8). 

Favourable housing market prospects had a positive impact on housing loan 
demand in all of the largest euro area countries. In addition, the low general level of 
interest rates had a positive effect in all countries except Italy. With the exception of 
France and Italy, where the effect was neutral, consumer confidence also had a 
positive impact on housing loan demand. Other financing needs and the use of 
alternative finance dampened demand in Germany and Spain, and debt 
refinancing/restructuring (included in “other financing needs”) also contributed to 
lower housing loan demand in France. 

The euro area bank lending survey – Third quarter of 2018 

17 

 
Chart 8 
Changes in demand for loans to households for house purchase, and contributing 
factors 

(net percentages of banks reporting an increase in demand and contributing factors) 

demand - actual
demand - expected

housing market prospects
general level of interest rates
use of alternative finance

consumer confidence
other financing needs

100

80

60

40

20

0

-20

300

250

200

150

100

50

0

-50

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

8
1
0
2

4
Q

300

250

200

150

100

50

0

-50

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

Notes: See the notes accompanying Chart 4. “Other financial needs” is the unweighted average of “debt refinancing/restructuring and 
renegotiation” and “regulatory and fiscal regime of housing markets”; “use of alternative finance” is the unweighted average of “internal 
finance of house purchase out of savings/down payment”, “loans from other banks” and “other sources of external finance”. 

Table 8 
Factors contributing to net demand for loans to households for house purchase 

(net percentages) 

Housing market 
prospects 

Consumer 
confidence 

Other financing 
needs 

General level of 
interest rates 

Use of alternative 
finance 

Country 

Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

23 

31 

33 

0 

20 

50 

14 

7 

11 

6 

20 

49 

13 

7 

22 

7 

0 

48 

11 

7 

22 

0 

0 

49 

1 

2 

-6 

-8 

-5 

1 

-2 

-6 

-1 

0 

31 

32 

31 

34 

56 

29 

20 

51 

18 

7 

33 

29 

0 

50 

-3 

-9 

-11 

2 

3 

0 

-3 

-8 

-4 

0 

0 

0 

Note: See the notes accompanying Chart 8. 

For the fourth quarter of 2018, euro area banks expect net demand for housing loans 
to increase (18%). 

2.3 

Consumer credit and other lending to households 

2.3.1 

Credit standards for consumer credit and other lending to 
households remain broadly unchanged 

In the third quarter of 2018, credit standards for consumer credit and other lending to 
households remained broadly unchanged (with the net percentage of banks standing 
at 1%, compared with -3% in the previous quarter; see Chart 9 and overview table), 

The euro area bank lending survey – Third quarter of 2018 

18 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
despite banks having expected net easing in the previous survey round. At the same 
time, the net percentage remained below the historical average since 2003. 

Looking at the largest euro area countries, credit standards on consumer credit and 
other lending to households eased in Spain, tightened in Germany and remained 
unchanged in the other three countries. 

According to euro area banks, competitive pressure from other banks and non-banks 
had a slight easing impact on credit standards, while banks’ cost of funds and 
balance sheet constraints had a slight tightening impact. Risk perceptions and 
banks’ tolerance of risk had a broadly neutral impact (see Chart 9 and Table 9). 

Chart 9 
Changes in credit standards applied to the approval of consumer credit and other 
lending to households, and contributing factors 

(net percentages of banks reporting tightening credit standards and contributing factors) 

credit standards - actual
credit standards - expected

20

10

0

-10

-20

-30

-40

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

8
1
0
2

4
Q

5

0

-5

-10

-15

-20

banks' risk tolerance
risk perceptions
competition
cost of funds and balance sheet constraints
other factors

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

20

10

0

-10

-20

-30

-40

Notes: See the notes accompanying Chart 1. “Risk perceptions” is the unweighted average of “general economic situation and 
outlook”, “creditworthiness of consumers” and “risk on the collateral demanded”; “competition” is the unweighted average of 
“competition from other banks” and “competition from non-banks”. “Other factors” are provided by banks when none of the above 
factors are applicable. They are shown as memo items and refer here, in particular, to changes in regulations and legislation. 

Looking at the largest euro area countries, banks’ cost of funds and balance sheet 
constraints had a tightening impact on credit standards for consumer credit in Italy, in 
line with developments reported for credit standards on housing loans, while the 
impact was neutral in the other four countries. In addition, banks’ tolerance of risk 
was mentioned as a tightening factor in Germany. In contrast, competition had an 
easing impact on credit standards in Italy and Spain, risk perceptions had an easing 
impact in the Netherlands and tolerance of risk had an easing impact in Spain. 

Looking ahead to the fourth quarter of 2018, euro area banks expect a net easing of 
credit standards on consumer credit and other lending to households (-3%). 

The euro area bank lending survey – Third quarter of 2018 

19 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 9 
Factors contributing to the net tightening of credit standards for consumer credit and 
other lending to households 

(net percentages) 

Cost of funds and 
balance sheet 
constraints 

Pressure from 
competition 

Perception of risk 

Banks' risk tolerance 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

10 

0 

-4 

-3 

-20 

0 

0 

0 

-2 

0 

-10 

0 

-5 

0 

-2 

0 

-7 

0 

0 

-1 

1 

0 

0 

0 

-14 

-14 

-1 

0 

-10 

0 

0 

0 

0 

3 

-10 

0 

0 

0 

Note: See the notes accompanying Chart 9. 

2.3.2 

Terms and conditions for consumer credit and other lending to 
households remain unchanged 

The overall terms and conditions applied by banks when granting new consumer 
credit and other lending to households remained unchanged in the third quarter of 
2018 (see Chart 10 and Table 10). Margins on average loans continued to narrow, 
while margins on riskier loans remained broadly unchanged in the third quarter. 
Other terms and conditions, like collateral requirements and loan size, also remained 
broadly unchanged. 

Chart 10 
Changes in terms and conditions for consumer credit and other lending to 
households 

(net percentages of banks reporting tightening terms and conditions) 

5

0

-5

-10

-15

overall terms and conditions

15

0

-15

-30

-45

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

margins on average loans
collateral requirements

margins on riskier loans
other terms and conditions

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

15

0

-15

-30

-45

Notes: “Margins” are defined as the spread over a relevant market reference rate. “Other terms and conditions” is the unweighted 
average of “size of the loan”, “non-interest rate charges” and “maturity”.  

The euro area bank lending survey – Third quarter of 2018 

20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 10 
Changes in terms and conditions for consumer credit and other lending to 
households 

(net percentages) 

Overall terms and conditions 

Banks' margins on average 
loans 

Banks' margins on riskier 
loans 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-8 

-6 

-30 

-7 

-10 

0 

0 

6 

-20 

0 

0 

0 

-12 

-13 

-30 

-13 

-20 

0 

-10 

0 

-20 

-19 

-20 

0 

-2 

-6 

0 

0 

0 

0 

1 

3 

0 

0 

0 

0 

Note: See the notes accompanying Chart 10. 

Looking at the largest euro area countries, overall terms and conditions on consumer 
credit and other lending to households eased in Spain, tightened in Germany and 
remained unchanged in the other three countries. Banks in Spain, France and Italy 
reported a further narrowing of margins on average loans. Margins on riskier loans 
remained unchanged in all countries except Germany where they tightened. 

Competitive pressures remained the predominant factor contributing to the net 
easing of terms and conditions on new consumer credit and other lending to 
households (see Table 11). Risk perceptions also contributed to that easing, while 
other factors had a broadly neutral impact.  

Table 11 
Factors contributing to the net tightening of terms and conditions for consumer credit 
and other lending to households 

(net percentages) 

Cost of funds and 
balance sheet 
constraints 

Pressure from 
competition 

Perception of risk 

Banks' risk tolerance 

Country 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Q2 2018 

Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

-10 

-9 

-20 

-7 

-20 

0 

-9 

-3 

-20 

-9 

-20 

0 

-5 

0 

-10 

0 

0 

-3 

3 

0 

0 

0 

-41 

-41 

-1 

0 

0 

0 

0 

0 

-1 

0 

-10 

0 

0 

0 

Note: The net percentages for these questions relating to contributing 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. 

Competitive pressures had an easing impact on overall terms and conditions in all of 
the largest euro area countries, with the exception of the Netherlands. Banks in the 
Netherlands reported that risk perceptions were having an easing impact, while their 
impact was neutral in most other large countries. Moreover, risk perceptions were 
regarded as a tightening factor in Germany. Banks’ cost of funds, balance sheet 
constraints and tolerance of risk had a neutral impact in all large countries. 

The euro area bank lending survey – Third quarter of 2018 

21 

  
  
2.3.3 

Rejection rates for consumer credit and other lending to 
households continue to decrease 

The net share of rejected applications for consumer credit and other lending to 
households decreased in the third quarter of 2018 (with the net percentage standing 
at -3%, as it had in the previous survey round; see Chart 11). 

Chart 11 
Change in the share of rejected applications for consumer credit and other lending to 
households 

(net percentages of banks reporting an increase in the share of rejections) 

Q4 2017
Q1 2018

Q2 2018
Q3 2018

10

0

-10

-20

-30

-40

-50

euro area

DE

ES

FR

IT

NL

Note: Share of loan rejections relative to the volume of all loan applications in that loan category. 

Looking at the largest euro area countries, rejection rates declined in Italy and the 
Netherlands, and remained unchanged in the other three countries. 

2.3.4 

Net demand for consumer credit and other lending to households 
continues to increase 

According to euro area banks, net demand for consumer credit and other lending to 
households continued to increase in the third quarter of 2018 (with the net 
percentage of banks standing at 22%, compared with 25% in the previous quarter; 
see Chart 12 and overview table). That net percentage was above the historical 
average and higher than had been expected in the previous survey round. 

Net demand for consumer credit and other lending to households increased in all of 
the largest euro area countries. 

Looking at the factors driving demand at the euro area level, the low general level of 
interest rates, consumer confidence and financing needs for spending on durable 
consumer goods all continued to contribute to the net increase in demand (see 
Chart 12 and Table 12). Other factors, such as the use of alternative finance and 
consumption expenditure financed through real estate-guaranteed loans, had a 
broadly neutral impact on demand. 

The euro area bank lending survey – Third quarter of 2018 

22 

 
225

200

175

150

125

100

75

50

25

0

-25

Looking at the largest euro area countries, the low general level of interest rates, 
consumer confidence and spending on durable goods all made positive contributions 
to demand in most countries. 

Chart 12 
Changes in demand for consumer credit and other lending to households, and 
contributing factors 

(net percentages of banks reporting an increase in demand and contributing factors) 

spending on durable goods
general level of interest rates
use of alternative finance

consumer confidence
consumption exp. (real estate)

70

60

50

40

30

20

10

0

-10

demand - actual
demand - expected

225

200

175

150

125

100

75

50

25

0

-25

6
1
0
2

3
Q

6
1
0
2

4
Q

7
1
0
2

1
Q

7
1
0
2

2
Q

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

8
1
0
2

4
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

8
1
0
2

3
Q

DE

ES

FR

IT

NL

Notes: See the notes accompanying Chart 4. “Use of alternative finance” is the unweighted average of “internal financing out of 
savings”, “loans from other banks” and “other sources of external finance”. “Consumption exp. (real estate)” denotes “consumption 
expenditure financed through real estate-guaranteed loans”.  

Table 12 
Factors contributing to net demand for consumer credit and other lending to 
households 

(net percentages) 

Spending on 
durable goods 

Consumer 
confidence 

Consumption exp. 
(real estate) 

General level of 
interest rates 

Use of alternative 
finance 

Country 

Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018  Q2 2018  Q3 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

20 

25 

50 

0 

20 

41 

17 

10 

40 

0 

20 

59 

21 

22 

50 

9 

10 

41 

18 

16 

30 

2 

10 

59 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

17 

13 

40 

9 

20 

41 

19 

0 

40 

21 

20 

74 

0 

-1 

-3 

4 

0 

-6 

-1 

-4 

0 

0 

3 

0 

Note: See the notes accompanying Chart 12. 

For the fourth quarter of 2018, euro area banks expect a continued increase in net 
demand for consumer credit and other lending to households (15%). 

The euro area bank lending survey – Third quarter of 2018 

23 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 

Ad hoc questions 

3.1 

Banks’ access to retail and wholesale funding 

As in previous survey rounds, the October 2018 survey questionnaire included a 
question assessing the extent to which the situation in financial markets was 
affecting banks’ access to retail and wholesale funding. Banks were asked whether 
their access to funding had deteriorated or eased over the past three months. 
Negative net percentages indicate an improvement, while positive figures indicate a 
deterioration in net terms. 

For the third quarter of 2018, euro area banks reported, in net terms, that their 
access to wholesale funding had deteriorated for unsecured money markets and 
debt securities issuance, whereas their access to securitisation had improved (see 
Chart 13 and Table 13).7 Banks’ access to retail funding remained broadly 
unchanged according to reporting euro area banks. 

Chart 13 
Banks’ assessment of funding conditions and the ability to transfer credit risk off the 
balance sheet 

(net percentages of banks reporting a deterioration in market access) 

retail funding
money markets

debt securities
securitisation

20

10

0

-10

-20

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018
(exp.)

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”. 

Looking ahead to the fourth quarter of 2018, euro area banks do not expect any 
change in their access to retail funding. As regards wholesale funding, they expect a 
continued deterioration in their access to money markets and debt securities 
issuance and an improvement in their access to securitisation. 

7   As regards the results for securitisation, a large number of banks (between 44% and 46%, depending 
on the type of securitisation) replied “not applicable” on the grounds that this source of funding is not 
relevant for them. 

The euro area bank lending survey – Third quarter of 2018 

24 

 
                                                                    
Table 13 
Banks’ assessment of funding conditions and the ability to transfer credit risk off the 
balance sheet 

(net percentages of banks reporting a deterioration in market access) 

Retail funding 

Interbank unsecured money 
market 

Wholesale debt 
securities 

Securitisation 

Q2 2018 

Q3 2018 

-3 

1 

3 

3 

9 

5 

4 

-3 

Note: See the notes accompanying Chart 13. 

3.2 

The impact of the ECB’s asset purchase programme 

The October 2018 survey questionnaire included two biannual ad hoc questions 
gauging the impact of the ECB’s asset purchase programme (APP). When 
answering questions on the impact of the APP over the past and next six months, 
banks were asked to take account of both the impact of the additional asset 
purchases in the context of the APP and the impact of the reinvestment of the 
principal payments from maturing securities purchased under the APP. Banks were 
also asked to consider both direct and indirect effects of the APP, as there may be an 
indirect impact on their financial situation and asset allocation even if the bank 
concerned has not been involved in any direct asset sales vis-à-vis the Eurosystem. 

In this survey round, banks reported the APP’s impact on their financial situation. In 
addition, banks also provided an assessment of the APP’s impact on their lending 
conditions and loan volumes. 

3.2.1 

Impact of the ECB’s asset purchase programme on banks’ financial 
situation 

This section reports on banks’ responses regarding the APP’s impact on their assets, 
liquidity situation, market financing conditions, profitability, and capital and leverage 
ratios. Overall, euro area banks reported that the APP had contributed, over the past 
six months, to improvements in their liquidity positions and market financing 
conditions, but a deterioration in their profitability (see Chart 14). Over the next six 
months, euro area banks expect the APP to continue to have a positive impact on 
their liquidity positions (albeit to a lesser extent than in the past), but they also expect 
it to contribute to a deterioration in their market financing conditions. 

The euro area bank lending survey – Third quarter of 2018 

25 

  
Chart 14 
Overview of the impact of the APP on euro area banks’ financial situation 

(net percentages of respondents) 

Apr-18

Oct-18

expected

50

40

30

20

10

0

-10

-20

-30

-40

total assets

liquidity position

market financing
conditions

profitability

capital ratio

leverage ratio

Notes: The net percentages are defined as the difference between the sum of the percentages for “increased/improved considerably” 
and “increased/improved somewhat” and the sum of the percentages for “decreased/deteriorated somewhat” and 
“decreased/deteriorated considerably”. The periods in the legend refer to the respective BLS survey rounds. “Expected” denotes 
expectations indicated by banks in the current round. 

Euro area banks reported that the APP had had a broadly neutral impact on their 
total assets over the past six months (with a net percentage of -1%, compared with 
10% in the April 2018 survey). At the same time, they reported that the APP had 
contributed to a further decrease in their holdings of sovereign bonds (with a net 
percentage of -18%, compared with -11% in April 2018; see Chart 15). Over the next 
six months, euro area banks expect the impact on their total assets to remain 
neutral, and they expect the APP to result in a decline in their holdings of euro area 
sovereign bonds. 

Chart 15 
Impact of the APP on euro area banks’ assets and market financing conditions 

(net percentages of respondents) 

euro area sovereign bond holdings

financing via ABSs

covered bonds

equity issued

unsecured bank bonds

total

90

60

30

0

-30

Apr-18

Oct-18

expected

Apr-18

Oct-18

expected

total assets

market financing conditions

Note: See the notes accompanying Chart 14. 

Banks reported that the APP had had a positive impact on their liquidity situation 
over the past six months (with a net percentage of 9%, compared with 21% in the 

The euro area bank lending survey – Third quarter of 2018 

26 

 
 
April 2018 survey). Banks expect this impact to diminish over the next six months 
(net percentage of 2%; see Chart 14). 

Euro area banks also reported that the APP had resulted in an improvement in their 
market financing conditions (with a net percentage of 10%, compared with 25% in 
the April 2018 survey; see Chart 15). That positive impact was mainly related to 
banks’ financing via covered bonds and, to a lesser extent, unsecured bank bonds 
and asset-backed securities (ABSs). Banks expect the APP to result in a 
deterioration in their market financing conditions over the next six months (net 
percentage of -4%). 

Euro area BLS banks reported that the APP had, overall, had a negative impact on 
their profitability over the past six months (net percentage of -27%, compared 
with -30% in the April 2018 survey round; see Chart 16). That negative impact on 
euro area banks’ profitability was due to a negative impact on banks’ net interest 
margins (net percentage of -31%, compared with -33% in April 2018), whereas a 
small net percentage of banks reported a negative impact on profitability resulting 
from capital gains/losses due to the APP (-2%, compared with 3% in April 2018). 
Over the next six months, a net percentage of -30% of participating euro area banks 
expect the APP to have a dampening impact on their profitability. 

Chart 16 
Impact of the APP on euro area banks’ profitability and capital positions 

(net percentages of respondents) 

Apr-18

Oct-18

expected

20

10

0

-10

-20

-30

-40

total

net interest
margin

profitability

capital gains/
losses

capital ratio

leverage ratio

capital position

Note: See the notes accompanying Chart 14. 

With regard to banks’ capital positions, a small net percentage of euro area banks 
indicated that the APP had contributed to declines in their capital ratios over the past 
six months (-2%, compared with 3% in April 2018), but banks expect a neutral impact 
over the coming six months (see Chart 14). In addition, euro area banks indicated a 
small positive impact on their leverage ratios over the past six months (net 
percentage of 2%, compared with -2% in April 2018) and expect a neutral impact 
over the next six months. 

The euro area bank lending survey – Third quarter of 2018 

27 

 
3.2.2 

Impact of the ECB’s asset purchase programme on banks’ lending 
conditions and lending volumes 

Euro area banks reported that the APP had had a neutral impact on their credit 
standards across all loan categories over the past six months (net percentage of 0% 
for loans to enterprises, compared with -3% in April 2018; net percentages of 0% for 
both housing loans and consumer credit, compared with -1% in April 2018; see 
Chart 17, left-hand side). Over the next six months, banks expect the impact of the 
APP on credit standards to remain broadly neutral across all loan categories. 

Chart 17 
Impact of the APP on bank lending conditions 

(net percentages of respondents) 

Apr-18

Oct-18

expected

2

0

-2

-4

-6

-8

enterprises

households for house
purchase

consumer credit and
other lending

enterprises

households for house
purchase

consumer credit and
other lending

credit standards

terms and conditions

Notes: 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”. The periods in the legend 
refer to the respective BLS survey rounds. “Expected” denotes expectations indicated by banks in the current round. 

The APP continued to have a net easing impact on terms and conditions for new 
loans, according to reporting banks, although the effect diminished further relative to 
previous survey rounds (-4% for loans to enterprises, compared with -7% in April 
2018; -3% for housing loans, compared with -6% in April 2018; -2% for consumer 
credit and other lending to households, compared with -3% in April 2018; see 
Chart 17, right-hand side). Over the next six months, the impact on terms and 
conditions is expected to be broadly neutral for all loan categories. 

The euro area bank lending survey – Third quarter of 2018 

28 

 
Chart 18 
Impact of the APP on bank lending volumes 

(net percentages of respondents) 

Apr-18

Oct-18

expected

15

10

5

0

-5

enterprises

households for house purchase

consumer credit and other lending

Notes: The net percentages are defined as the difference between the sum of the percentages for “increased considerably” and 
“increased somewhat” and the sum of the percentages for “decreased somewhat” and “decreased considerably”. The periods in the 
legend refer to the respective BLS survey rounds. “Expected” denotes expectations indicated by banks in the current round. 

Euro area banks were also asked to indicate the APP’s impact on their lending 
volumes. 8 Euro area banks reported a positive impact on lending volumes for loans 
to enterprises and housing loans over the past six months, but those net 
percentages were lower than in the April 2018 survey round (3% for loans to 
enterprises, down from 10%; and 3% for housing loans, down from 13%; see 
Chart 18). Banks reported a broadly neutral impact on lending volumes for consumer 
credit and other lending to households (1%, compared with 6% in April 2018). For 
the next six months, banks expect a small positive impact on lending volumes for 
loans to enterprises and a broadly neutral impact for housing loans and consumer 
credit. 

3.3 

The impact of the ECB’s negative deposit facility rate 

The October 2018 survey questionnaire also included a biannual ad hoc question 
aimed at gauging the impact of the ECB’s negative deposit facility rate (DFR) on 
banks’ net interest income, lending conditions and lending volumes. Banks were 
asked to consider both direct and indirect effects of the negative DFR, as there may 
be an indirect impact on banks’ financial situation and lending conditions even if the 
bank concerned has no excess liquidity. 

As regards the effect on banks’ net interest income,9 euro area BLS banks again 
reported a negative impact over the past six months (with a net percentage of -68%, 
compared with -77% in the April 2018 BLS round; see Chart 19). A similar impact is 
expected over the coming six months (net percentage of -62%). 

8   Since April 2018, this has replaced the question on the use of the additional liquidity related to the APP 

for granting loans. 

9   Net interest income is defined as the difference between the interest earned and paid by the bank on 

outstanding amounts of interest-bearing assets and liabilities. 

The euro area bank lending survey – Third quarter of 2018 

29 

 
                                                                    
Chart 19 
Impact of the negative DFR on banks’ net interest income and bank lending 

(net percentages of respondents) 

Apr-18

Oct-18

expected

25

0

-25

-50

-75

-100

e
m
o
c
n

i

t
s
e
r
e
t
n

i

t
e
n

s
e
t
a
r

i

g
n
d
n
e

l

i

n
g
r
a
m
n
a
o

l

s
e
g
r
a
h
c

e
t
a
r

.
t
n
i
-
n
o
n

s
e
m
u
o
v

l

i

g
n
d
n
e

l

s
e
t
a
r

i

g
n
d
n
e

l

i

n
g
r
a
m
n
a
o

l

s
e
g
r
a
h
c

e
t
a
r

.
t
n
i
-
n
o
n

s
e
m
u
o
v

l

i

g
n
d
n
e

l

s
e
t
a
r

i

g
n
d
n
e

l

i

n
g
r
a
m
n
a
o

l

s
e
g
r
a
h
c

e
t
a
r

.
t
n
i
-
n
o
n

s
e
m
u
o
v

l

i

g
n
d
n
e

l

enterprises

households for house purchase

consumer credit and other lending

Notes: The net percentages are defined as the difference between the sum of the percentages for “increased considerably” and 
“increased somewhat” and the sum of the percentages for “decreased somewhat” and “decreased considerably”. The periods in the 
legend refer to the respective BLS survey rounds. “Expected” denotes expectations indicated by banks in the current round. 

As regards the impact on loans to enterprises, euro area banks again reported, in 
net terms, that the DFR had resulted in a decline in lending rates over the past six 
months (net percentage of -31%, compared with -36% in April 2018) and that it had 
had a negative impact on loan margins 10 (net percentage of -31%, unchanged from 
April 2018; see Chart 19). At the same time, banks indicated a broadly neutral impact 
on non-interest rate charges for loans to enterprises over the past six months (net 
percentage of 1%, unchanged from April 2018). In terms of lending volumes to 
enterprises, banks reported a positive impact over the past six months (net 
percentage of 10%, compared with 4% in April 2018). For the next six months, 
smaller net percentages of banks expect declines in lending rates (-24%) and loan 
margins (-25%) on account of the DFR. In addition, euro area banks expect a neutral 
impact on non-interest charges (1%) and an ongoing positive effect on lending 
volumes for loans to enterprises (5%). 

As regards the DFR’s impact on loans to households for house purchase, the effect 
reported by euro area banks was, overall, broadly in line with the impact reported for 
loans to enterprises. Again, euro area banks indicated a negative impact on both 
lending rates (net percentage of -32%, compared with -37% in April 2018) and loan 
margins (net percentage of -31%, compared with -30% in April 2018; see Chart 19) 
over the past six months. At the same time, the net percentage of euro area banks 
that indicated that the negative DFR had led to an increase in non-interest rate 
charges for housing loans over the past six months was very small (2%, unchanged 
from April 2018). In terms of lending volumes, euro area banks reported a continued 
positive effect (11%, compared with 9% in April 2018). For the next six months, 
smaller net percentages of banks expect a negative impact on lending rates (-26%) 
and loan margins (-26%), while a smaller net percentage expects a positive impact 
on lending volumes (6%). 

10   The loan margin is defined as the spread of the bank’s lending rates for new loans over a relevant 

market reference rate. 

The euro area bank lending survey – Third quarter of 2018 

30 

 
                                                                    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As regards consumer credit and other lending to households, euro area banks 
indicated that the DFR had had a negative impact on their lending rates over the 
past six months (net percentage of -24%, compared with -30% in April 2018), as well 
as a negative impact on loan margins (net percentage of -23%, compared with -24% 
in April 2018; see Chart 19). At the same time, euro area banks reported that the 
negative DFR had had almost no impact on non-interest rate charges for consumer 
credit over the past six months (net percentage of 0%, compared with 1% in April 
2018). In terms of lending volumes, euro area banks reported a positive effect (net 
percentage of 5%, compared with 2% in April 2018). For the next six months, smaller 
net percentages of banks expect a negative impact on lending rates (-19%) and loan 
margins (-20%), while the impact on non-interest charges (0%) and lending volumes 
(4%) is expected to remain similar. 

The euro area bank lending survey – Third quarter of 2018 

31 

Annex 1
Results for the standard questions*

Loans or credit lines to enterprises

Question 1
Over the past three months, how have your bank’s credit standards1 as applied to the approval of loans or 
credit lines to enterprises2, 3, 4 changed? Please note that we are asking about the change in credit standards, 
rather than about their level.
(in percentages, unless otherwise stated)

Tightened considerably

Tightened somewhat

Remained basically unchanged

Eased somewhat

Eased considerably

NA7

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans to small 
and medium-sized 

Loans to large 

Overall

5
enterprises

5
enterprises

6
Short-term loans

Long-term loans6

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

96

4

0

0

0

0

94

6

0

0

0

1

96

2

0

1

0

0

94

5

0

1

0

0

95

4

0

1

0

0

92

7

0

1

0

0

92

7

0

0

0

0

95

4

0

0

0

0

96

4

0

0

0

0

96

4

0

0

100

100

100

100

100

100

100

100

100

100

-3

-2

3.03

139

-6

-3

3.06

137

-2

-1

3.02

136

-4

-2

3.04

134

-3

-2

3.03

133

-7

-4

3.07

131

-6

-3

3.06

139

-4

-2

3.04

137

-3

-2

3.03

139

-4

-2

3.04

137

1) See Glossary for Credit standards. 
2) See Glossary for Loans.
3) See Glossary for Credit line. 
4) See Glossary for Enterprises. 
5) See Glossary for Enterprise size.  
6) See Glossary for Maturity. 
7) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
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 of the banks’ responses is 
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

* Figures might not add up to 100 due to rounding

The euro area bank lending survey - Third quarter of 2018

A1

Question 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)

Overall

A) Cost of funds and balance sheet constraints1

Costs related to your bank's capital position2

Your bank's ability to access market financing3

Your bank's liquidity position

B) Pressure from competition

Competition from other banks

Competition from non-banks4

Competition from market financing

C) Perception of risk5

General economic situation and outlook

Industry or firm-specific situation and 
outlook/borrower's creditworthiness6

Risk related to the collateral demanded

D) Your bank's risk tolerance5

Your bank's risk tolerance

Small and medium-sized enterprises

A) Cost of funds and balance sheet constraints1

Costs related to your bank's capital position2

Your bank's ability to access market financing3

Your bank's liquidity position

B) Pressure from competition

Competition from other banks

Competition from non-banks4

Competition from market financing

C) Perception of risk5

General economic situation and outlook

Industry or firm-specific situation and 
outlook/borrower's creditworthiness6

Risk related to the collateral demanded

D) Your bank's risk tolerance5

Your bank's risk tolerance

--

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

°

98

97

99

88

95

97

92

94

97

98

97

96

97

87

96

96

92

93

98

98

+

0

0

0

10

3

1

6

5

2

1

0

0

0

11

1

1

5

5

0

0

NetP

DI

Mean

++

NA7

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

3

1

2

2

2

0

0

0

1

2

4

2

3

3

3

1

1

1

1

1

-1

-2

-16

-4

0

-6

-6

0

-1

1

-1

-1

1

0

0

-9

-3

-1

-5

-4

-2

-1

1

1

1

-17

-10

-2

1

-4

-6

2

1

-1

-1

-4

-4

1

1

1

-1

-1

-8

-2

0

-3

-3

0

0

1

-1

0

-8

-1

1

-2

-3

1

0

0

0

0

-5

-2

0

-2

-2

-1

0

1

0

0

-5

0

0

-2

-2

1

0

2.99

3.01

3.02

3.16

3.04

3.00

2.99

3.00

3.00

3.09

3.03

3.01

3.06

3.05

3.06

3.04

3.00

3.02

3.01

3.01

2.99

3.01

3.01

3.17

3.02

2.99

2.99

2.99

2.99

3.10

3.01

3.01

3.04

3.04

3.06

3.04

2.98

2.99

2.99

2.99

-

1

0

0

0

0

0

2

1

1

0

1

1

1

0

0

0

2

1

1

1

The euro area bank lending survey - Third quarter of 2018

A2

Large enterprises

A) Cost of funds and balance sheet constraints1

Costs related to your bank's capital position2

Your bank's ability to access market financing3

Your bank's liquidity position

B) Pressure from competition

Competition from other banks

Competition from non-banks4

Competition from market financing

C) Perception of risk5

General economic situation and outlook

Industry or firm-specific situation and 
outlook/borrower's creditworthiness6

Risk related to the collateral demanded

D) Your bank's risk tolerance5

Your bank's risk tolerance

--

0

0

0

0

0

0

0

0

0

0

-

0

0

0

0

0

0

2

1

1

0

°

98

97

98

85

94

93

93

93

98

97

+

0

0

0

13

3

5

5

5

0

1

NetP

DI

Mean

++

NA7

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

0

0

0

0

0

0

0

0

1

3

1

2

2

2

1

1

1

1

3

-2

-2

0

0

0

-12

-12

-4

0

-5

-5

0

-2

-3

-5

-3

-4

1

-1

2

-1

-1

-6

-2

0

-2

-3

0

-1

0

0

0

-6

-2

-2

-2

-2

0

0

2.97

3.02

3.02

3.12

3.04

3.00

3.00

3.00

3.00

3.12

3.03

3.05

3.05

3.03

3.05

3.04

3.00

2.99

3.02

3.01

1) See Glossary for Cost of funds and balance sheet constraints.
2) Can involve the use of credit derivatives, with the loans remaining on the bank’s balance sheet.
3) Involves the sale of loans from the bank’s balance sheet, i.e. off-balance sheet funding.
4) See Glossary for Non-banks. 
5) See Glossary for Perception of risk and risk tolerance.
6) Risks related to non-performing loans may be reflected not only in the "industry or firm-specific situation and outlook/borrower's creditworthiness", but also in the bank's "cost of 
funds and balance sheet constraints".
7) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A3

Question 3
Over the past three months, how have your bank’s terms and conditions1 for new loans or credit lines to 
enterprises changed?

(in percentages, unless otherwise stated)

Overall

A) Overall terms and conditions1

Overall terms and conditions

B) Margins

Your bank's margin on average loans2

Your bank's margin on riskier loans

C) Other conditions and terms

Non-interest rate charges3

Size of the loan or credit line

Collateral4 requirements

Loan covenants5

Maturity

Small and medium-sized enterprises

A) Overall terms and conditions1

Overall terms and conditions

B) Margins

Your bank's margin on average loans2

Your bank's margin on riskier loans

C) Other conditions and terms

Non-interest rate charges3

Size of the loan or credit line

Collateral4 requirements

Loan covenants5

Maturity

Large enterprises

A) Overall terms and conditions1

Overall terms and conditions

B) Margins

Your bank's margin on average loans2

Your bank's margin on riskier loans

C) Other conditions and terms

Non-interest rate charges3

Size of the loan or credit line

Collateral4 requirements

Loan covenants5

Maturity

°

89

78

92

96

95

98

96

92

91

79

87

95

97

97

94

91

86

74

90

95

92

95

95

90

+

9

17

3

2

5

1

4

5

7

15

6

2

2

2

5

4

11

20

6

2

6

4

5

6

NetP

DI

Mean

++

NA6

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

0

0

0

1

1

2

1

1

1

1

1

1

1

1

1

1

1

1

1

-16

-7

-8

-27

-4

-5

-9

-5

-8

-6

-13

0

0

-5

-1

-4

-1

-14

-2

-3

-5

-2

-4

-3

-11

-5

-6

-21

0

-4

-5

-5

-7

-5

-11

-2

0

-2

-1

-5

-1

-10

0

-2

-3

-2

-3

-3

-17

-9

-8

-26

-4

-5

-5

-7

-8

-10

-16

-3

0

-5

-3

-5

-2

-13

-2

-3

-3

-4

-4

-5

-3

-6

0

0

-2

-1

-2

-1

-3

-5

-1

0

-1

0

-3

0

-4

-8

-1

0

-2

-2

-2

-1

3.16

3.07

3.27

3.04

3.05

3.09

3.05

3.08

3.06

3.13

3.00

3.00

3.05

3.01

3.04

3.01

3.12

3.05

3.21

3.01

3.04

3.05

3.05

3.07

3.05

3.11

3.02

3.00

3.02

3.01

3.05

3.00

3.17

3.09

3.27

3.04

3.06

3.06

3.07

3.08

3.10

3.16

3.03

3.00

3.05

3.03

3.05

3.02

-

2

4

3

2

0

0

0

4

1

4

4

2

0

1

0

4

2

4

3

2

1

0

0

4

--

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1) See Glossary for Credit terms and conditions. 
2) See Glossary for Loan margin/spread over a relevant market reference rate.
3) See Glossary for Non-interest rate charges.
4) See Glossary for Collateral. 
5) See Glossary for Covenant.
6) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A4

Question 4
Over the past three months, how have the following factors1 affected your bank’s credit terms and conditions as 
applied to new loans or credit lines to enterprises?
(in percentages, unless otherwise stated)

Overall impact on your bank's credit terms and conditions

--

-

°

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

1

0

0

0

Impact on your bank's margins on average loans

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

1

0

0

0

Impact on your bank's margins on riskier loans

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

1

0

0

0

2

1

0

0

2

1

0

0

2

2

1

1

97

80

97

98

97

76

97

98

96

90

98

98

+

0

18

3

1

0

22

3

2

0

6

0

0

NetP

DI

Mean

++

NA2

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

0

1

0

0

1

2

1

1

-3

3

-1

-26

-16

-13

-2

-1

-3

-1

-1

0

-3

2

-2

2

-8

-1

0

2

-27

-20

-13

-10

-2

-1

0

-13

3

0

-3

-1

3

-4

1

1

-1

0

0

-7

1

0

-2

-1

2

-2

0

1

3

3

3

3

3

3

3

3

3

3

3

3

2.96

3.17

3.03

3.01

2.96

3.21

3.03

3.01

2.96

3.04

2.99

2.99

1) The factors refer to the same sub-factors as in question 2.
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A5

Question 5
Over the past three months (apart from normal seasonal fluctuations), has the share of enterprise loan 
applications1 that were completely rejected2 by your bank increased, remained unchanged or decreased (loan 
volume, relative to the total volume of loan applications in that loan category)? 

(in percentages, unless otherwise stated)

Decreased considerably

Decreased somewhat

Remained basically unchanged

Increased somewhat

Increased considerably

NA3

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Share of rejected applications

Jul 18

Oct 18

0

3

91

5

0

1

100

2

1

3.02

139

0

3

91

4

0

1

100

1

1

3.01

137

1)  See Glossary for Loan application. 
2)  See Glossary for Loan rejection.
3)  “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options. The number of banks responding refers to all participating banks which have business in or exposure to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A6

Question 6
Over the past three months (apart from normal seasonal fluctuations), how has the demand for loans1 or credit 
lines2 to enterprises changed at your bank? Please refer to the financing need of enterprises independent of 
whether this need will result in a loan or not.
(in percentages, unless otherwise stated)

Decreased considerably

Decreased somewhat

Remained basically unchanged

Increased somewhat

Increased considerably

NA3

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans to small 
and medium-sized 
enterprises

Loans to large 
enterprises

Overall

Short-term loans

Long-term loans

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

10

64

26

0

0

1

10

66

22

1

0

0

9

64

25

1

1

1

9

63

25

1

1

0

13

62

23

1

1

1

10

68

20

0

1

0

7

77

16

0

0

1

7

76

15

1

0

0

11

58

30

0

0

0

11

65

23

1

0

100

100

100

100

100

100

100

100

100

100

16

8

3.16

139

12

6

3.11

137

16

9

3.17

136

15

8

3.15

134

11

6

3.12

133

10

4

3.09

131

9

4

3.09

139

8

4

3.08

137

19

10

3.19

139

12

6

3.13

137

1) See Glossary for Demand for loans.
2) See Glossary for Credit line. 
3) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options. The number of banks responding refers to all participating banks which have business in or exposure to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A7

Question 7
Over the past three months, how have the following factors affected the overall demand for loans or credit lines 
to enterprises?
(in percentages, unless otherwise stated)

A) Financing needs/underlying drivers or 
purpose of loan demand

Fixed investment

Inventories and working capital

Mergers/acquisitions and corporate restructuring

General level of interest rates 

Debt refinancing/restructuring and renegotiation1

B) Use of alternative finance

Internal financing

Loans from other banks

Loans from non-banks

Issuance/redemption of debt securities

Issuance/redemption of equity

--

0

1

0

0

0

0

0

0

0

0

-

7

4

6

1

4

8

5

2

4

1

°

+

++

NA2

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

NetP

DI

Mean

75

80

77

80

85

89

90

98

91

94

18

14

17

16

10

1

5

0

1

0

1

1

0

3

0

1

0

0

0

0

0

1

0

0

0

0

0

0

4

5

6

15

13

22

9

-2

2

-3

-1

1

12

10

10

18

6

-6

0

-2

-3

-1

3

7

6

11

5

-1

1

-2

0

0

6

5

5

10

3

-2

0

-1

-1

-1

3.06

3.15

3.13

3.22

3.10

2.98

3.02

2.97

2.99

3.01

3.12

3.10

3.10

3.20

3.06

2.96

3.00

2.98

2.97

2.99

1) See Glossary for Debt refinancing/restructuring and renegotiation.
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A8

Question 8
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. Please note that we are asking about the change in credit 
standards, rather than about their level.
(in percentages, unless otherwise stated)

Tighten considerably

Tighten somewhat

Remain basically unchanged

Ease somewhat

Ease considerably

NA1

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans to small 
and medium-sized 
enterprises

Loans to large 
enterprises

Overall

Short-term loans

Long-term loans

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

2

93

5

0

0

0

4

92

5

0

0

0

2

92

4

0

1

0

2

92

5

0

1

0

2

92

6

0

1

0

4

87

9

0

1

0

1

93

5

0

0

0

3

92

5

0

0

0

2

93

5

0

0

1

3

90

6

0

0

100

100

100

100

100

100

100

100

100

100

-3

-2

3.03

139

-1

-1

3.01

137

-2

-1

3.02

136

-3

-2

3.03

134

-4

-2

3.04

133

-5

-2

3.05

131

-4

-2

3.04

139

-3

-1

3.03

137

-3

-1

3.03

139

-2

-1

3.01

137

1) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
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 of the banks’ responses is 
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A9

Question 9
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)? Please refer to the financing need of enterprises 
independent of whether this need will result in a loan or not.
(in percentages, unless otherwise stated)

Decrease considerably

Decrease somewhat

Remain basically unchanged

Increase somewhat

Increase considerably

NA1

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans to small 
and medium-sized 
enterprises

Loans to large 
enterprises

Overall

Short-term loans

Long-term loans

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

1

80

20

0

0

0

3

83

12

2

0

0

1

80

18

0

1

0

3

80

14

2

1

0

1

81

17

0

1

0

3

84

11

1

1

0

3

82

14

0

0

0

2

84

12

2

0

0

1

77

22

0

0

0

2

81

16

1

0

100

100

100

100

100

100

100

100

100

100

19

9

3.19

139

11

6

3.12

137

17

8

3.17

136

13

7

3.14

134

16

8

3.16

133

9

5

3.10

131

11

5

3.11

139

11

6

3.13

137

21

10

3.21

139

14

7

3.15

137

1) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
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 of the banks’ responses is 
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A10

Loans to households

Question 10
Over the past three months, how have your bank’s credit standards1 as applied to the approval of loans2 to 
households3 changed? Please note that we are asking about the change in credit standards, rather than about 
their level.
(in percentages, unless otherwise stated)

Tightened considerably

Tightened somewhat

Remained basically unchanged

Eased somewhat

Eased considerably

NA5

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans for house purchase

Consumer credit and other lending4

Jul 18

Oct 18

Jul 18

Oct 18

1

0

90

9

0

0

100

-8

-3

3.07

134

0

5

89

6

0

0

100

-2

-1

3.02

133

0

1

95

4

0

0

100

-3

-2

3.03

140

0

3

95

2

0

0

100

1

1

2.99

138

1) See Glossary for Credit standards. 
2) See Glossary for Loans.
3) See Glossary for Households. 
4) See Glossary for Consumer credit and other lending.
5) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
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 of the banks’ responses is 
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A11

Question 11
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)

A) Cost of funds and balance sheet constraints1

Cost of funds and balance sheet constraints

B) Pressure from competition

Competition from other banks

Competition from non-banks2

C) Perception of risk3

General economic situation and outlook

Housing market prospects, including expected 
house price developments4
Borrower’s creditworthiness5

D) Your bank's risk tolerance3

Your bank's risk tolerance

--

0

0

0

0

0

0

0

-

2

0

0

0

0

1

2

°

97

93

95

97

97

96

97

+

1

6

1

3

3

3

1

NetP

DI

Mean

++

NA6

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

3

0

0

0

0

1

1

1

0

0

0

0

0

-9

-5

-5

-4

-4

-1

1

-6

-4

-3

-3

-2

0

0

-5

-4

-2

-2

-2

0

0

-3

-3

-1

-1

-1

0

3.00

2.99

3.09

3.08

3.06

3.07

3.05

3.03

3.04

3.03

3.04

3.02

3.01

3.00

1) See Glossary for Cost of funds and balance sheet constraints.
2) See Glossary for Non-banks. 
3) See Glossary for Perception of risk and risk tolerance.
4) See Glossary for Housing market prospects, including expected house price developments.
5) Risks related to non-performing loans may be reflected not only in the "borrower's creditworthiness", but also in the bank's "cost of funds and balance sheet constraints".
6) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A12

Question 12
Over the past three months, how have your bank’s terms and conditions1 for new loans to households for 
house purchase changed?
(in percentages, unless otherwise stated)

A) Overall terms and conditions

Overall terms and conditions

B) Margins

Your bank’s loan margin on average loans2

Your bank’s loan margin on riskier loans

C) Other terms and conditions

Collateral(3) requirements

"Loan-to-value" ratio4

Other loan size limits

Maturity

--

0

0

0

0

0

0

0

-

4

6

4

1

1

1

1

°

89

73

85

98

98

96

96

+

7

21

9

1

1

3

3

NetP

DI

Mean

++

NA6

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

1

1

0

0

0

0

0

0

1

0

0

0

0

-9

-2

-5

-30

-9

1

-1

-2

-3

-16

-5

0

0

-2

-2

-16

-5

0

0

-1

-1

-1

-8

-3

0

0

-1

-1

3.09

3.02

3.31

3.10

2.99

3.01

3.02

3.03

3.17

3.06

3.00

2.99

3.01

3.01

0

0

0

0

100

Non-interest rate charges5
1) See Glossary for Credit terms and conditions. 
2) See Glossary for Loan margin/spread over a relevant market reference rate.
3) See Glossary for Collateral. 
4) See Glossary for Loan-to-value ratio.
5) See Glossary for Non-interest rate charges.
6) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

3.00

3.00

0

0

0

0

0

The euro area bank lending survey - Third quarter of 2018

A13

Question 13
Over the past three months, how have the following factors1 affected your bank’s credit terms and conditions as 
applied to new loans to households for house purchase? 
(in percentages, unless otherwise stated)

Overall impact on your bank's credit terms and conditions

--

-

°

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

0

0

0

0

Impact on your bank's margins on average loans

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

0

0

0

0

Impact on your bank's margins on riskier loans

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

0

0

0

0

2

1

2

0

5

4

0

0

2

2

3

0

97

79

94

99

94

71

95

99

94

90

97

99

+

1

19

4

1

1

25

5

1

3

8

0

0

NetP

DI

Mean

++

NA2

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

0

1

0

0

1

1

1

1

0

0

0

-19

-18

-10

-5

-1

-2

-1

0

4

-2

0

0

0

-9

-1

-1

3.00

3.00

3.21

3.18

3.05

3.02

3.01

3.01

2

3.00

2.96

-28

-21

-15

-10

3.29

3.21

-5

-1

0

-8

1

-2

-5

-1

-1

-6

3

0

-2

-1

0

-4

0

-1

-2

0

-1

-3

1

0

3.05

3.05

3.01

3.01

3.00

3.01

3.08

3.06

2.99

2.97

3.02

3.00

1) The factors refer to the same sub-factors as in question 11.
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A14

Question 14
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?
(in percentages, unless otherwise stated)

A) Cost of funds and balance sheet constraints

Cost of funds and balance sheet constraints 

B) Pressure from competition

Competition from other banks

Competition from non-banks

C) Perception of risk

General economic situation and outlook

Creditworthiness of consumers1

Risk on the collateral demanded

D) Your bank's risk tolerance 

Your bank's risk tolerance 

--

0

0

0

0

0

0

0

-

2

0

0

0

1

0

1

°

97

97

96

100

95

93

97

+

0

2

3

0

4

0

1

NetP

DI

Mean

++

NA2

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

0

0

0

0

0

0

1

1

1

0

0

7

0

0

-4

-4

-2

-5

0

-1

2

-2

-3

0

-3

0

0

0

-2

-2

-1

-2

0

-1

1

-1

-2

0

-1

0

0

3.00

2.98

3.04

3.04

3.02

3.05

3.00

3.02

3.03

3.00

3.03

3.00

3.01

3.00

1) Risks related to non-performing loans may be reflected not only in the "creditworthiness of consumers", but also in the bank's "cost of funds and balance sheet constraints".
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A15

Question 15
Over the past three months, how have your bank’s terms and conditions for new consumer credit and other 
lending to households changed?
(in percentages, unless otherwise stated)

A) Overall terms and conditions

Overall terms and conditions

B) Margins

Your bank’s loan margin on average loans

Your bank’s loan margin on riskier loans

C) Other terms and conditions

Collateral requirements

Size of the loan 

Maturity

Non-interest rate charges

--

0

0

0

0

0

0

0

-

2

3

2

0

0

1

0

°

95

84

96

94

99

98

100

+

2

11

1

0

0

0

0

NetP

DI

Mean

++

NA1

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

1

0

0

0

0

0

0

0

1

6

0

0

0

-8

0

-12

-2

0

-1

0

2

-10

1

0

0

1

0

-4

-6

-1

0

-1

0

1

0

-6

0

0

0

1

0

3.08

3.00

3.13

3.02

3.00

3.01

3.00

2.98

3.11

2.99

3.00

3.00

2.99

3.00

1) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A16

Question 16
Over the past three months, how have the following factors(1) affected your bank’s credit terms and conditions 
as applied to new consumer credit and other lending to households?
(in percentages, unless otherwise stated)

Overall impact on your bank's credit terms and conditions

--

-

°

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

0

0

0

0

Impact on your bank's margins on average loans

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

0

0

0

0

Impact on your bank's margins on riskier loans

A)  Cost of funds and balance sheet constraints 

Cost of funds and balance sheet constraints 

B) Pressure from competition

Pressure from competition

C) Perception of risk 

Perception of risk 

D) Your bank's risk tolerance 

Your bank's risk tolerance 

0

0

0

0

0

1

1

0

0

2

1

0

0

2

0

0

100

88

95

98

96

80

95

95

99

95

99

99

+

0

9

4

1

4

16

0

5

0

2

0

0

NetP

DI

Mean

++

NA2

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

0

1

0

0

0

1

4

0

0

0

0

0

0

1

0

0

0

1

0

0

1

2

1

1

1

-10

-5

-1

0

-9

-3

-1

-3

-4

-17

-15

-5

-4

2

-3

0

0

-3

-5

0

0

0

0

0

-5

-3

0

-1

-9

-4

-2

1

-2

0

0

0

-5

-1

0

-2

-8

-3

-2

0

0

0

0

2.99

3.00

3.10

3.10

3.05

3.03

3.01

3.01

3.03

3.04

3.17

3.17

3.08

3.06

3.04

3.05

2.98

3.00

3.03

3.00

3.00

3.00

3.00

3.00

1) The factors refer to the same sub-factors as in question 14.
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A17

Question 17
Over the past three months (apart from normal seasonal fluctuations), has the share of household loan 
applications1 that were completely rejected2 by your bank increased, remained unchanged or decreased (loan 
volume, relative to the total volume of loan applications in that loan category)? 

(in percentages, unless otherwise stated)

Decreased considerably

Decreased somewhat

Remained basically unchanged

Increased somewhat

Increased considerably

NA3

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans for house purchase

Consumer credit and other lending

Jul 18

Oct 18

Jul 18

Oct 18

0

7

86

7

0

1

100

0

0

3.00

134

0

3

90

6

0

1

100

3

2

3.03

133

0

5

92

2

0

1

100

-3

-1

2.97

140

0

6

91

2

0

1

100

-3

-2

2.97

138

1) See Glossary for Loan application.
2) See Glossary for Loan rejection.
3) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
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 of the banks’ responses is 
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A18

Question 18
Over the past three months (apart from normal seasonal fluctuations), how has the demand for loans1 to 
households changed at your bank? Please refer to the financing need of households independent of whether 
this need will result in a loan or not.
(in percentages, unless otherwise stated)

Decreased considerably

Decreased somewhat

Remained basically unchanged

Increased somewhat

Increased considerably

NA2

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans for house purchase

Consumer credit and other lending

Jul 18

Oct 18

Jul 18

Oct 18

0

5

66

27

1

0

100

23

12

3.25

134

0

14

66

19

1

0

100

5

3

3.06

133

0

2

72

24

2

0

100

25

13

3.27

140

0

3

72

23

1

0

100

22

11

3.23

138

1) See Glossary for Demand for loans.
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
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 of the banks’ responses is 
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A19

Question 19
Over the past three months, how have the following factors affected the demand for loans to households for 
house purchase?
(in percentages, unless otherwise stated)

A) Financing needs/underlying drivers or 
purpose of loan demand
Housing market prospects, including expected 
house price developments 
Consumer confidence1

General level of interest rates

Debt refinancing/restructuring and renegotiation2

Regulatory and fiscal regime of housing markets

B) Use of alternative sources for housing 
finance
Internal finance of house purchase out of 
savings/down payment3

Loans from other banks

Other sources of external finance

--

0

0

0

0

0

0

0

0

-

6

0

2

2

2

3

8

1

°

+

++

NA4

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

NetP

DI

Mean

75

89

77

95

94

96

90

99

20

11

18

3

3

1

2

0

0

0

3

0

0

0

0

0

0

0

0

0

1

0

0

0

23

13

31

1

0

-5

-3

-1

14

11

18

1

0

-1

-6

-1

11

7

17

1

0

-3

-1

-1

7

6

11

1

0

-1

-3

0

3.23

3.14

3.13

3.34

3.01

3.00

3.11

3.21

3.01

3.00

2.95

2.99

2.97

2.99

2.94

2.99

1) See Glossary for Consumer confidence.
2) See Glossary for Debt refinancing/restructuring and renegotiation.
3) See Glossary for Down payment. 
4) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A20

Question 20
Over the past three months, how have the following factors affected the demand for consumer credit and other 
lending to households?
(in percentages, unless otherwise stated)

A) Financing needs/underlying drivers or 
purpose of loan demand

Spending on durable consumer goods

Consumer confidence

General level of interest rates

Consumption expenditure financed through real-
estate guaranteed loans1

B) Use of alternative finance

Internal finance out of savings  

Loans from other banks

Other sources of external finance

--

0

0

0

0

0

0

0

-

0

0

0

0

1

4

0

°

+

++

NA2

Jul 18

Oct 18

Jul 18

Oct 18

Jul 18

Oct 18

NetP

DI

Mean

83

82

80

91

97

94

100

17

18

19

0

1

1

0

0

0

0

0

0

0

0

0

0

0

9

0

0

0

20

21

17

0

-2

3

-2

17

18

19

0

1

-3

0

10

10

9

0

-1

1

-1

8

9

10

0

0

-1

0

3.20

3.21

3.17

3.17

3.18

3.19

3.00

3.00

2.98

3.03

2.98

3.01

2.97

3.00

1) Consumption expenditure financed through real-estate guaranteed loans
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
Notes: The net percentage (NetP) 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 (DI) 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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options.

The euro area bank lending survey - Third quarter of 2018

A21

Question 21
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. Please note that we are asking about the change in credit standards, 
rather than about their level.
(in percentages, unless otherwise stated)

Tighten considerably

Tighten somewhat

Remain basically unchanged

Ease somewhat

Ease considerably

NA1

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans for house purchase

Consumer credit and other lending

Jul 18

Oct 18

Jul 18

Oct 18

0

2

86

12

0

0

100

-9

-5

3.09

134

0

2

90

7

0

0

100

-5

-2

3.05

133

0

2

91

7

0

0

100

-6

-3

3.06

140

0

2

93

5

0

0

100

-3

-1

3.03

138

1) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
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 of the banks’ responses is 
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A22

Question 22
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). Please refer to the financing need of households independent 
of whether this need will result in a loan or not.
(in percentages, unless otherwise stated)

Decrease considerably

Decrease somewhat

Remain basically unchanged

Increase somewhat

Increase considerably

NA1

Total

Net percentage

Diffusion index

Mean

Number of banks responding

Loans for house purchase

Consumer credit and other lending

Jul 18

Oct 18

Jul 18

Oct 18

0

1

79

19

1

0

100

19

10

3

134

0

1

77

20

0

1

100

18

9

3

133

0

1

83

16

0

0

100

16

8

3

140

0

2

80

18

0

0

100

15

8

3.15

138

1) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
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 of the banks’ responses is
calculated using weights from 1 to 5 for the five possible response options. The number of banks responding refers to all participating banks which have business in or exposure 
to the respective lending category.

The euro area bank lending survey - Third quarter of 2018

A23

Annex 2
Results for ad hoc questions

Question 111
As a result of the situation in financial markets1, 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? 

(in percentages, unless otherwise stated)

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 1 week)
Short-term money market
(more than 1 week)

C) Wholesale debt securities3

Short-term debt securities
(e.g. certificates of deposit or commercial paper)
Medium to long term debt securities (incl. 
covered bonds)

D) Securitisation4

Securitisation of corporate loans 

Securitisation of loans for house purchase 

E) Ability to transfer credit risk off balance 
sheet5
Ability to transfer credit risk off balance sheet

--

0

0

0

0

0

0

0

0

0

-

3

5

2

6

87

88

89

86

5

74

10

74

1

1

50

47

3

1

2

1

0

4

5

5

0

0

0

0

0

0

0

0

3

Over the past three months 

Over the next three months 

°

+

+ +

NA2

NetP Mean

Std. 
dev.

--

°

+

+ +

NA2

NetP Mean

Std. 
dev.

7

6

8

7

21

11

44

46

-1

3

0

5

5

6

-4

-4

3.01

0.29

2.97

0.27

3.00

0.20

2.94

0.29

2.93

0.27

2.94

0.44

3.05

0.31

3.04

0.31

0

0

0

0

0

0

0

0

-

0

4

1

6

92

87

91

87

2

76

11

72

1

0

55

51

2

2

0

0

1

6

2

4

0

0

0

0

0

0

0

0

0

7

6

8

7

21

11

43

45

-2

2

1

6

0

5

-1

-4

3.02

0.13

2.98

0.28

2.99

0.11

2.93

0.27

2.99

0.21

2.94

0.46

2.99

0.24

3.05

0.25

41

-2

3.01

0.27

2

48

1

46

-2

3.06

0.48

0

1

55

3

1) Please also take into account any effect of state guarantees vis-à-vis debt securities and recapitalisation support.
2) "NA" (not applicable) includes banks for which the source of funding is not relevant.
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 of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options. Std. dev. denotes standard deviation. Figures may not exactly add up due to rounding.

The euro area bank lending survey - Third quarter of 2018

A24

Question 130
Over the past six months, has the ECB's expanded asset purchase programme led to a change in your bank's 
assets or affected (either directly or indirectly) your bank in any of the following areas? Is it likely to have an 
impact here over the next six months?

(in percentages, unless otherwise stated)

Over the past six months 

Over the next six months 

A) Your bank's total assets 

Your bank's total assets (non-risk 
weighted volume)

of which:

euro area sovereign bond holdings

B) Your bank's liquidity position

Your bank's overall liquidity position

C) Your bank's market financing
conditions
Your bank's overall market financing 
conditions

of which financing via: 

asset-backed securities

covered bonds

unsecured bank bonds

equity issued

D) Your bank's profitability 

Your bank's overall profitability

owing to: 

net interest margin2

capital gains/losses 

E) Your bank's capital position

Your bank's capital ratio3

Your bank's leverage ratio4

--

2

1

0

0

0

0

0

0

1

2

1

0

0

-

2

°

88

21

69

+

3

2

82

10

77

12

2

3

2

3

3

0

52

59

71

55

29

60

32

3

3

1

57

86

83

83

11

18

6

0

3

3

2

1

2

+ +

NA1 NetP Mean

Std. 
dev.

--

0

1

0

0

0

4

4

0

0

0

0

0

0

6

7

6

8

35

16

17

45

6

6

8

-1

2.98

0.37

-18

2.80

0.58

9

3.09

0.36

10

3.11

0.42

10

18

7

0

3.13

0.47

3.27

0.66

3.13

0.58

3.00

0.00

-27

2.68

0.58

-31

2.64

0.60

-2

2.97

0.32

14

14

-2

2

2.98

0.22

3.02

0.21

2

0

0

0

0

0

0

0

3

3

0

0

0

-

1

°

90

17

75

3

7

4

11

10

1

85

82

52

58

68

54

26

63

30

3

1

1

60

86

84

84

+

1

0

5

3

8

14

6

0

0

0

2

1

0

+ +

NA1 NetP Mean

Std. 
dev.

0

0

0

0

0

0

0

0

0

0

0

0

0

7

8

7

9

36

17

17

45

7

7

9

-1

2.98

0.33

-16

2.81

0.43

2

3.02

0.30

-4

2.96

0.34

4

3

-4

-1

3.06

0.48

3.02

0.58

2.94

0.46

2.99

0.12

-30

2.63

0.58

-33

2.60

0.57

-1

2.98

0.23

15

15

0

0

3.00

0.16

2.99

0.11

1) “NA” (not applicable) includes banks which do not have any business in or exposure to this category.
2) Interest income minus interest paid, relative to the amount of interest-bearing assets.
3) Defined in accordance with the regulatory requirements set out in the CRR/CRD IV, including both tier 1 capital and tier 2 capital.
4) Defined in accordance with the delegated act under the Capital Requirements Regulation adopted by the European Commission on 10 October 2014. 
Notes: The net percentage (NetP) is defined as the difference between the sum of the percentages of banks responding “--” (contributed considerably to a decrease or
deterioration) and “-” (contributed somewhat to a decrease or deterioration), and the sum of the percentages of banks responding “+” (contributed somewhat to an increase or
improvement) and “++” (contributed considerably to an increase or improvement). “°” means “had basically no impact”. The mean of the banks’ responses is calculated using 
weights from 1 to 5 for the five possible response options. Std. dev. denotes standard deviation. 

The euro area bank lending survey - Third quarter of 2018

A25

Question 132
Over the past six months, how has the ECB's expanded asset purchase programme affected your bank's lending 
policy and lending volume? And what will be its impact on lending behaviour over the next six months?

(in percentages, unless otherwise stated)

Over the past six months 

Over the next six months 

A) Your bank's credit standards

For loans to enterprises 

For loans to households for house 
purchase
For consumer credit and other lending to 
households

B) Your bank's terms and conditions 

For loans to enterprises 

For loans to households for house 
purchase
For consumer credit and other lending to 
households

C) Your bank's lending volume

For loans to enterprises 

--

0

0

0

0

0

0

0

-

0

0

0

2

1

0

°

93

94

93

85

91

93

+

0

0

0

6

3

2

1

88

4

+ + NA1 NetP Mean

Std. 
dev.

No of 
banks

--

0

0

0

0

0

0

0

7

5

6

7

5

6

7

0

0

0

-4

-3

-2

3.00

3.00

0

0

137

133

3.00

0.05

138

3.05

0.30

137

3.03

0.21

133

3.02

0.14

138

3

3.03

0.25

137

0

0

0

0

0

0

0

-

0

1

0

2

2

0

°

91

92

93

87

90

92

+

1

1

1

3

2

1

0

90

3

+ + NA1 NetP Mean

Std. 
dev.

No of 
banks

0

0

0

0

0

0

0

8

6

6

8

6

6

8

-1

0

-1

0

0

3.01

0.10

137

3.00

0.13

133

3.01

0.11

138

3.00

0.23

137

3.00

0.20

133

-1

3.01

0.12

138

2

3.02

0.17

137

0

5

1

0

88

For loans to households for house 
purchase
For consumer credit and other lending to 
households
1) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category.
Notes: The net percentage (NetP) is defined as the difference between the sum of the percentages of banks responding “--” (contributed considerably to a tightening or decrease)
and “-” (contributed somewhat to a tightening or decrease), and the sum of the percentages of banks responding “+” (contributed somewhat to an easing or increase) and “++” 
(contributed considerably to an easing or increase). “°” means “had basically no impact”. The mean of the banks’ responses is calculated using weights from 1 to 5 for the five 
possible response options. Std. dev. denotes standard deviation. The number of banks responding (No of banks) refers to all participating banks which have business in or 
exposure to the respective lending category. 

3.03

0.26

2.99

0.19

3.01

0.18

3.01

0.11

133

133

138

138

90

92

92

-1

5

3

0

2

1

0

6

0

1

2

0

6

1

0

0

1

0

6

1

The euro area bank lending survey - Third quarter of 2018

A26

Question 133
Given the ECB's negative deposit facility rate, did or will this measure, either directly or indirectly1, contribute to: 

(in percentages, unless otherwise stated)

Over the past six months

Over the next six months

--

-

°

+

+ + NA2 NetP Mean

Std. 
dev.

No of 
banks

--

-

°

+

+ + NA2 NetP Mean

Std. 
dev.

No of 
banks

Impact on your bank's net interest income

Impact on your bank's net interest income3

12

59

22

1

Loans to enterprises

Impact on your bank's lending rates

Impact on your bank's loan margin4
Impact on your bank's non-interest rate 
charges

Impact on your bank's lending volume 

Loans to households for house purchase

Impact on your bank's lending rates

Impact on your bank's loan margin4
Impact on your bank's non-interest rate 
charges

Impact on your bank's lending volume 

Consumer credit and other lending to 
households
Impact on your bank's lending rates

Impact on your bank's loan margin4
Impact on your bank's non-interest rate 
charges

Impact on your bank's lending volume 

1

1

0

0

1

0

0

0

0

0

0

0

34

33

3

4

33

33

1

2

24

23

1

2

56

58

87

76

61

62

92

82

68

70

91

84

2

2

3

14

2

2

2

12

0

0

1

7

2

2

0

0

0

0

0

0

0

0

0

0

0

4

-68

2.17

0.77

147

14

51

29

1

6

6

7

6

4

4

5

4

7

7

8

7

-31

2.69

0.67

137

-31

2.65

0.58

137

1

3.01

0.27

137

10

3.10

0.44

137

-32

2.66

0.57

133

-31

2.67

0.54

133

2

3.02

0.20

133

11

3.11

0.38

133

-24

2.74

0.47

138

-23

2.74

0.46

138

0

5

3.00

0.13

138

3.05

0.31

138

1

1

0

0

1

0

0

0

0

0

0

0

27

26

3

3

27

28

1

2

19

20

1

2

62

64

87

83

66

66

92

86

73

72

91

84

2

2

3

8

2

2

2

8

1

0

1

6

2

2

0

0

0

0

0

0

0

0

0

0

0

4

-62

2.21

0.82

147

6

6

7

6

4

4

5

4

7

7

8

8

-24

2.76

0.64

137

-25

2.72

0.55

137

1

5

3.01

0.27

137

3.06

0.34

137

-26

2.72

0.56

133

-26

2.71

0.53

133

2

6

3.02

0.20

133

3.06

0.33

133

-19

2.80

0.45

138

-20

2.78

0.45

138

0

4

3.00

0.13

138

3.04

0.30

138

1) Independent of whether your bank has excess liquidity.
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
3) The net interest income is defined as the difference between the interest earned and interest paid on the outstanding amount of interest-bearing assets and liabilities by the 
bank. 
4) The loan margin is defined as the spread of the bank’s lending rates on new loans over a relevant market reference rate. 
Notes: The net percentage (NetP) is defined as the difference between the sum of the percentages of banks responding “--” (contributed considerably to a decrease) and “-” 
(contributed somewhat to a decrease), and the sum of the percentages of banks responding “+” (contributed somewhat to an increase) and “++” (contributed considerably to an 
increase). “°” means “had basically no impact”. The mean of the banks’ responses is calculated using weights from 1 to 5 for the five possible response options. Std. dev. 
denotes standard deviation. The number of banks responding (No of banks) refers to all participating banks which have business in or exposure to the respective lending 
category.

The euro area bank lending survey - Third quarter of 2018

A27

© European Central Bank, 2018 

Postal address 
Telephone 
Website 

60640 Frankfurt am Main, Germany 
+49 69 1344 0 
www.ecb.europa.eu 

All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. 

For specific terminology please refer to the ECB glossary. 

PDF 
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ISSN 1830-5989, EU catalogue No: QB-BA-18-004-EN-N 
ISSN 1830-5989, EU catalogue No: QB-BA-18-004-EN-Q, doi: 10.2866/52058