The euro area bank lending survey. Second quarter of 2018.
Date: 2020-03-03
Institutions: European Central Bank
Subjects: European Central Bank, bank, economic analysis, euro area, loan, serial publication

The euro area 
bank lending survey 

Second quarter of 2018 

July 2018 

Contents 

Introduction 

1 

2 

Overview of the 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  Banks’ adjustment to regulatory and supervisory action 

3.3 

3.4 

Factors determining the level of banks’ lending margins 

The impact of banks’ non-performing loan ratios on their lending 
policies 

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 

26 

27 

A1 

A24 

The euro area bank lending survey – Second quarter of 2018 

1 

Introduction 

The results reported in the July 2018 bank lending survey (BLS) relate to changes 
during the second quarter of 2018 and expectations for the third quarter of 2018. The 
survey was conducted between 18 June and 3 July 2018. The response rate was 
100%. In addition to the results for the euro area as a whole, the report contains the 
results for the five largest euro area countries.1 

A number of ad hoc questions were included in the July 2018 survey round. They 
address the impact of the situation in financial markets on banks’ access to retail and 
wholesale funding, the impact of ongoing regulatory or supervisory changes on 
banks’ lending policies, the significance of factors determining the level of banks’ 
lending margins and the impact of banks’ non-performing loan ratios on their lending 
policies. 

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 – Second quarter of 2018 

2 

                                                                      
1 

Overview of the results 

According to the July 2018 bank lending survey (BLS), credit standards continued to 
ease for loans to enterprises, loans to households for house purchase and consumer 
credit in the second quarter of 2018, while loan demand also increased across all 
loan categories, thereby continuing to support loan growth. 

Credit standards (i.e. banks’ internal guidelines or loan approval criteria) for loans to 
enterprises eased in the second quarter of 2018 (net percentage of reporting banks 
at -3%, after -8% in the previous quarter; see overview table), broadly in line with 
expectations in the previous survey round. In addition, credit standards for loans to 
households for house purchase eased (-8%, after -11% in the previous quarter), but 
by less than was expected in the previous survey round. Credit standards for 
consumer credit and other lending to households also eased (-3%, unchanged from 
the previous quarter), but by less than expected in the previous round. For the third 
quarter of 2018, banks expect a net easing of credit standards in the three loan 
categories (loans to enterprises: -3%, housing loans: -9%, consumer credit: -6%). 

For loans to enterprises, loans to households for house purchase and for consumer 
credit and other lending to households, competitive pressures and risk perceptions 
contributed to an easing in credit standards in the second quarter of 2018, while 
banks’ risk tolerance and their cost of funds and balance sheet constraints had a 
broadly neutral impact.  

Banks’ overall terms and conditions (i.e. banks’ actual terms and conditions agreed 
in the loan contract) on new loans continued to ease across all loan categories in the 
second quarter of 2018, driven mainly by a narrowing of margins on average loans 
(defined as the spread over relevant market reference rates). 

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

Net demand for loans to enterprises continued to increase in the second quarter of 
2018 (16%, after 15% in the previous quarter; see overview table), below 
expectations in the previous survey round. Banks expect net demand to continue 
increasing in the third quarter of 2018 (19%). Net demand increased further for 
housing loans (23%, after 5%) and for consumer credit and other lending to 
households (25%, after 14%). For the third quarter of 2018, banks expect an ongoing 
increase in net demand for housing loans (19%) and consumer credit (16%). 

The net increase in demand for loans to enterprises was mainly driven by the 
general level of interest rates, inventories and working capital, and mergers and 
acquisitions (M&A) activity. Net demand for housing loans continued to mainly be 
driven by the low general level of interest rates, favourable housing market prospects 
and consumer confidence. Finally, for consumer credit and other lending to 
households, consumer confidence, spending on durable goods and the low general 
level of interest rates continued to contribute positively to net demand in the second 
quarter of 2018. 

The euro area bank lending survey – Second quarter of 2018 

3 

Across the largest euro area countries, credit standards for loans to enterprises 
eased in Spain, Italy and Germany, while they remained unchanged in France and 
the Netherlands in the second quarter of 2018 (see overview table). For housing 
loans, banks eased their credit standards in all of these countries, with the exception 
of Italy where they were unchanged. Net demand for loans to enterprises increased 
in the Netherlands, Germany and Italy and remained unchanged in Spain in the 
second quarter of 2018, while decreasing slightly in France. For housing loans, net 
demand increased in all of the largest euro area countries. 

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 

18Q1 

18Q2  Avg. 

18Q1 

18Q2  Avg. 

18Q1 

18Q2  Avg. 

18Q1 

18Q2  Avg. 

18Q1 

18Q2  Avg. 

18Q1 

18Q2  Avg. 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-8 

-3 

0 

-18 

-20 

0 

-3 

-3 

9 

4 

-10 

10 

0 

-10 

0 

7 

14 

10 

15 

9 

0 

0 

30 

28 

16 

25 

0 

-3 

10 

45 

-2 

4 

-3 

-11 

-7 

-8 

-7 

6 

2 

-11 

-11 

15 

-10 

-14 

4 

-2 

-10 

-51 

-2 

0 

2 

1 

-50 

14 

5 

14 

22 

-40 

10 

33 

23 

21 

22 

17 

20 

51 

4 

8 

-9 

8 

15 

-2 

-3 

-9 

-3 

-3 

-10 

-20 

-2 

0 

0 

0 

0 

0 

5 

-1 

7 

-1 

7 

13 

14 

9 

20 

9 

40 

0 

25 

38 

60 

14 

30 

1 

9 

-8 

-1 

15 

-18 

-16 

Notes: Avg. stands for 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 based on the amounts outstanding of loans of the individual banks in the respective national samples. 

The July 2018 BLS also included a number of ad hoc questions. Regarding euro 
area banks’ access to funding, banks reported that access to retail funding improved 
slightly, in net terms, in the second quarter of 2018. As regards wholesale funding, 
according to reporting banks access to money markets, debt securities issuance and 
access to securitisation deteriorated in the second quarter of 2018.  

Euro area banks continued to adjust to regulatory or supervisory actions in the first 
half of 2018 by strengthening their capital positions. At the euro area level, banks 
reported a slight tightening of credit standards due to regulatory or supervisory 
actions across all loan categories. Supervisory actions had a broadly neutral impact 
on credit margins on loans to firms and on consumer credit, but led to a widening of 
margins on housing loans.  

With respect to the significance of the factors determining the level of banks’ lending 
margins, euro area banks reported that competition and profitability targets were the 
most significant factors across all categories of loans over the past six months, and 
that these factors also increased most in significance between the beginning of 2014 
and the end of 2017.  

In terms of the impact of banks’ non-performing loans (NPLs) on their lending 
policies, euro area banks reported that their NPLs contributed to a tightening in their 
credit standards and terms and conditions across all categories of loans over the 
past six months. However, this tightening impact has generally diminished relative to 
the impact between 2014 and 2017, and it is expected to decrease further in the next 
six months. Banks’ NPL ratios affected their lending policies mainly through their 

The euro area bank lending survey – Second quarter of 2018 

4 

  
 
impact on risk perceptions, risk tolerance and the cost of cleaning up the balance 
sheet. 

Box 1 
General notes  

The bank lending survey (BLS) is addressed to senior loan officers of a representative sample of 
euro area banks. In the current survey round, the sample group of banks participating in the survey 
comprises 149 banks, representing all the euro area countries, and takes into account 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 contains 22 standard questions on past and expected developments: 18 backward-looking 
and four forward-looking questions. In addition, it contains one open-ended question. The 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 credit standards for approving loans, credit terms and 
conditions for new loans, loan demand, the factors affecting loan supply and demand conditions, 
and the share of loan rejections. The survey questions are generally phrased in terms of changes 
over the past three months or expectations of changes over the next three months. Survey 
participants are asked to indicate changes on a five-point scale, indicating in a qualitative way the 
strength of a tightening or easing or the strength of a decrease or increase: (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 results of the individual banks participating in the BLS sample are aggregated in two steps. In 
the first step, individual bank results are aggregated to national results for the euro area countries, 
and in the second step, the national BLS results are aggregated to euro area BLS results.  

In the first step, banks’ replies can be aggregated to national BLS results either by applying an 
equal weight to the sample banks3 or, alternatively, by applying a weighting scheme based on the 
amounts outstanding of loans to non-financial corporations and households of the individual banks 
in the respective national samples. Specifically, for France, Malta, the Netherlands and Slovakia, an 
explicit weighting scheme is applied.  

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. 

3  

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

The euro area bank lending survey – Second quarter of 2018 

5 

 
                                                                      
In the second step, since the number of banks in the national samples differs considerably and 
does not always reflect the respective share in lending to euro area non-financial corporations and 
households, the national survey results are aggregated to euro area BLS results by applying a 
weighting scheme based on the national shares in the amounts outstanding of loans to euro area 
non-financial corporations and households. 

BLS indicators 

The responses to questions related to credit standards are analysed in this report by focusing on 
the difference (“net percentage”) between the share of banks reporting that credit standards applied 
to the loan approval have been tightened and the share of banks reporting that they have been 
eased. For all questions, the net percentage is determined based on all participating banks that 
have business in or exposure to the respective loan categories (i.e. they are included in the 
denominator when calculating the net percentage). This means that banks that are specialised in 
certain loan categories (e.g. they only grant loans to enterprises) are only considered in the 
aggregation for these 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 back data.4 For 
the standard BLS questions this has led to small revisions overall, while there have been larger 
revisions for some ad hoc questions 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 share of banks reporting an increase in loan demand (i.e. in bank loan financing 
needs) and the share 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 different sample sizes across countries imply that the answers of a 
single bank have a different impact on the magnitude of the 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 
measure is the weighted difference (“diffusion index”) between the share of banks reporting that 
credit standards have been tightened and the share of banks reporting that they have been eased. 
Likewise, regarding the demand for loans, the diffusion index refers to the weighted difference 
between the share of banks reporting an increase in loan demand and the share of banks reporting 
a decline. The diffusion index is constructed in the following way: lenders who have answered 
“considerably” are given a weight twice as high (score of 1) as lenders having answered 
“somewhat” (score of 0.5). The interpretation of the diffusion indices follows the same logic as the 
interpretation of net percentages. 

4   The non-harmonised historical data are different from the harmonised data mainly because of a 
heterogeneous treatment of “NA” replies and specialised banks across questions and countries. 
Historical non-harmonised BLS data are published for discontinued BLS questions and ad hoc 
questions. 

The euro area bank lending survey – Second quarter of 2018 

6 

                                                                      
Detailed tables and charts based on the responses are provided in Annex 1 for the standard 
questions and in Annex 2 for the ad hoc questions. In addition, BLS time series data are available 
on the ECB’s website via the ECB’s 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 be found 
at: http://www.ecb.europa.eu/stats/money/surveys/lend/html/index.en.html  

The euro area bank lending survey – Second 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 eased  

Credit standards (i.e. banks’ internal guidelines or loan approval criteria) for loans to 
enterprises eased in the second quarter of 2018 (at -3%, after -8% in the previous 
quarter; see Chart 1 and overview table). The net percentage remained below the 
historical average since 2003 and the net easing was broadly in line with 
expectations in the previous round. Across firm size, credit standards eased for loans 
to small and medium-sized enterprises (SMEs; -2%) and for loans to large firms 
(-3%). 

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

2
Q

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

20

10

0

-10

-20

-30

-40

20

10

0

-10

-20

-30

-40

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
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 the factors are defined as the difference between the percentage of banks reporting that the 
given factor contributed to a tightening and the percentage reporting that it contributed to an easing. “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 from other banks and risk perceptions 
regarding the general economic and industry or firm-specific situation and outlook 
continued to be the main factors having an easing impact on credit standards in the 

The euro area bank lending survey – Second quarter of 2018 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
second quarter of 2018, while banks’ risk tolerance and their cost of funds and 
balance sheet constraints had a broadly neutral impact (see Chart 1 and Table 1).5 

Across the largest euro area countries, credit standards for loans to enterprises 
eased in Spain, Italy and Germany, while they remained unchanged in France and 
the Netherlands in the second quarter of 2018. Competitive pressures contributed to 
an easing of credit standards in the Netherlands, Italy, Germany and France, while 
their contribution was neutral in Spain. Risk perceptions had an easing impact in the 
Netherlands, Spain and Italy, a neutral impact in Germany and a slight tightening 
impact in France. As regards banks’ cost of funds and balance sheet constraints, 
banks in Italy reported a slight easing impact, while in the other large countries this 
factor had a neutral effect. Regarding banks’ risk tolerance, banks in Spain reported 
an easing impact on credit standards, while banks in the other major euro area 
countries reported a neutral impact. 

Looking ahead to the third quarter of 2018, euro area banks expect credit standards 
for loans to enterprises to continue to ease (-3%). 

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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-1 

0 

3 

0 

-7 

0 

-1 

0 

0 

0 

-3 

0 

-7 

-5 

0 

-9 

-7 

-17 

-7 

-5 

0 

-4 

-10 

-17 

-7 

0 

-10 

-10 

-13 

-17 

-4 

0 

-10 

3 

-10 

-17 

-2 

-3 

0 

-4 

0 

0 

-1 

0 

-10 

0 

0 

0 

Note: See the notes to Chart 1. 

2.1.2 

Terms and conditions for loans to enterprises continued to improve 

In the second quarter of 2018, overall terms and conditions that banks apply when 
granting new loans or credit lines (i.e. the actual terms and conditions agreed in the 
loan contract) to enterprises continued to ease (see Chart 2). The net easing was 
driven mainly by a narrowing of margins on average loans to enterprises. Margins on 
riskier loans and all other credit terms and conditions (like collateral requirements, 
non-interest charges, loan covenants, loan maturity and loan size) also contributed 
to the net easing of banks’ credit terms and conditions for loans to enterprises, but to 
a lesser extent. 

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

The euro area bank lending survey – Second 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

2
Q

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

40

0

-40

-80

-120

-160

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
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”.  

Across the largest euro area countries, overall terms and conditions for new loans or 
credit lines to enterprises eased in all countries. This was mainly due to a further 
narrowing of margins on average loans. Margins on riskier loans narrowed in net 
terms in France and Germany, while they tightened in Spain and remained 
unchanged in the other large countries. 

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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-17 

-19 

-20 

-21 

-10 

-25 

Note: See the notes to Chart 2. 

-16 

-9 

-30 

-13 

-20 

-26 

-27 

-25 

-40 

-18 

-30 

-25 

-27 

-19 

-30 

-31 

-30 

-26 

-6 

-13 

0 

-5 

0 

0 

-4 

-6 

10 

-12 

0 

0 

Regarding the factors contributing to changes in overall credit terms and conditions, 
competitive pressures continued to have a strong easing impact. Banks’ cost of 
funds and balance sheet constraints and their risk perceptions also had an easing 
impact, while their risk tolerance had a broadly neutral impact (see Table 3).  

Across the largest euro area countries, competitive pressures continued to be the 
main factor driving easier terms and conditions in all countries, with the exception of 
the Netherlands where the impact was neutral. Banks’ cost of funds and balance 
sheet situation contributed to the easing in terms and conditions in Spain and Italy, 
and had a broadly neutral impact elsewhere. Banks’ risk perceptions had an easing 

The euro area bank lending survey – Second quarter of 2018 

10 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
impact in Italy and Spain, a tightening impact in the Netherlands and a neutral impact 
elsewhere, while their risk tolerance had a neutral impact in all of the largest euro 
area countries with the exception of Spain, where it had an easing effect. 

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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-5 

-9 

-10 

-2 

10 

0 

-3 

0 

-10 

0 

-10 

0 

-27 

-22 

-30 

-22 

-50 

0 

-26 

-22 

-20 

-28 

-50 

0 

-4 

0 

0 

0 

-20 

0 

-2 

0 

-10 

0 

-20 

26 

-1 

0 

0 

-4 

0 

0 

-1 

0 

-10 

0 

0 

0 

Note: The net percentages for responses to questions related to the factors are defined as the difference between the percentage of 
banks reporting that the given factor contributed to a tightening and the percentage reporting that it contributed to an easing. 

2.1.3 

Rejection rate for loans to enterprises increased slightly 

The net percentage share of rejected loan applications 
(i.e. the difference between the sum of the percentages 
of banks reporting an increase and that of banks 
reporting a decline in the share of loan rejections) 
increased slightly for loans to euro area enterprises in 
the second quarter of 2018 (2%, after 1% in the 
previous quarter; see Chart 3). 

Across the largest euro area countries, the rejection 
rate increased in the Netherlands and Spain, decreased 
in Italy and remained unchanged in Germany and 
France.  

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) 

Q3 2017

Q4 2017

Q1 2018

Q2 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. 

The euro area bank lending survey – Second 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 second quarter of 
2018 (net percentage of 16%, after 15% in the previous quarter; see Chart 4 and 
overview table). This was above the historical average, but slightly lower than banks’ 
expectations reported in the previous round. Loan demand increased for loans to 
both SMEs and large firms. 

Across the largest euro area countries, net demand for loans to enterprises 
increased in the Netherlands, Germany and Italy and remained unchanged in Spain, 
while decreasing slightly in France. 

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

(net percentages of banks reporting positive 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

150

125

100

75

50

25

0

-25

-50

-75

6
1
0
2

2
Q

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

150

125

100

75

50

25

0

-25

-50

-75

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
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 each factor are defined as the difference 
between the percentage of banks reporting that the given factor contributed to increasing demand and the percentage reporting that it 
contributed to decreasing demand. “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 
general level of interest rates, inventories and working capital and M&A activity 
(included in “other financing needs”; see Chart 4). Fixed investment and debt 
refinancing/restructuring leading to an increase or prolongation of the amount 
borrowed (included in “other financing needs”) also continued to have a positive, 
albeit smaller impact on demand. Firms’ internal financing (included in “use of 
alternative finance”) and loans from non-banks had a marginally negative impact on 
demand, according to reporting banks.6 

6   The calculation of a simple average for aggregating some factors to main categories assumes that all 

factors have the same importance for the banks. This partly explains some inconsistencies between 
the development of demand for loans and the development of the main underlying factor categories. 

The euro area bank lending survey – Second 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 

Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

12 

13 

0 

-13 

30 

25 

6 

13 

-20 

-13 

0 

42 

Note: See the notes to Chart 4. 

7 

3 

10 

-3 

20 

2 

15 

6 

30 

-3 

40 

19 

10 

8 

-5 

12 

5 

14 

11 

8 

-10 

9 

15 

27 

12 

6 

20 

0 

20 

25 

22 

16 

30 

12 

50 

26 

0 

-8 

-2 

7 

0 

6 

-1 

-7 

0 

-1 

4 

6 

Across the largest euro area countries, the low general level of interest rates 
supported loan demand in all major countries. Inventories and working capital also 
had a positive impact across all countries with the exception of France, where the 
impact was marginally negative. Banks reported that fixed investment made a 
positive contribution to loan demand in the Netherlands and Germany, had a 
dampening impact in Spain and France, and had a neutral impact in Italy. Finally, the 
use of alternative finance had a dampening impact on loan demand in Germany, a 
positive impact in the Netherlands and Italy, and a broadly neutral impact in Spain 
and France. 

For the third quarter of 2018, banks expect a further increase in loan demand from 
enterprises (19%). 

2.2 

Loans to households for house purchase 

2.2.1 

Credit standards for loans to households for house purchase 
continued to ease 

For loans to households for house purchase, credit standards eased in the second 
quarter of 2018 (-8%, after -11% in the previous quarter; see Chart 5 and overview 
table), but by less than expected in the previous survey round. The net percentage 
remains below the historical average since 2003.  

Across the largest euro area countries, banks in all countries eased their credit 
standards for housing loans, with the exception of Italy where no change was 
reported. 

The euro area bank lending survey – Second 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

15

10

5

0

-5

-10

-15

-20

-25

6
1
0
2

2
Q

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

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

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

DE

ES

FR

IT

NL

15

0

-15

-30

-45

-60

-75

-90

Notes: See the notes to 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 regulation and legislation of housing markets. 

Competitive pressure from other banks and non-banks and lower risk perceptions 
contributed to the net easing of credit standards for housing loans. Banks’ risk 
tolerance and their cost of funds and balance sheet constraints had a broadly neutral 
impact (see Chart 5 and Table 5). 

Across the largest euro area countries, banks reported an easing impact from 
competitive pressures in the Netherlands, Spain and Germany, while the impact was 
neutral in France and Italy. Risk perceptions had an easing impact in the 
Netherlands and Spain, and a neutral impact elsewhere, while banks’ risk tolerance 
had only a slight easing impact in Germany and France and a neutral effect in the 
other large countries. Banks’ cost of funds and balance sheet constraints had a 
broadly neutral impact on credit standards in all large countries.  

Looking ahead, euro area banks expect credit standards for housing loans to 
continue to ease (-9%) in the third quarter of 2018. 

The euro area bank lending survey – Second 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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-1 

0 

0 

-11 

0 

0 

0 

0 

0 

-1 

0 

0 

-8 

-9 

-6 

0 

0 

-7 

-5 

-6 

0 

0 

-33 

-48 

-4 

-1 

-11 

0 

-3 

-20 

-4 

0 

-11 

0 

0 

-32 

-4 

-7 

0 

-12 

0 

0 

-1 

-3 

0 

-2 

0 

0 

Note: See the notes to Chart 5. 

2.2.2 

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

Banks’ overall terms and conditions for new loans to households for house purchase 
continued to ease in the second quarter of 2018 (see Chart 6). This development 
was driven by narrower margins on average loans and, to a lesser extent, narrower 
margins on riskier loans. Collateral requirements and other terms and conditions 
remained broadly unchanged at the euro area level in the second quarter of 2018. 

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

2
Q

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

margins on average loans
collateral requirements

margins on riskier loans
other terms and conditions

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
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”.  

Banks in all of the largest euro area countries reported a net easing of overall terms 
and conditions and a narrowing of margins on average loans. Margins on riskier 
loans narrowed in net terms in the Netherlands and Germany, widened in France 
and remained broadly unchanged in Spain and Italy. 

The euro area bank lending survey – Second quarter of 2018 

15 

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-6 

-10 

-11 

0 

-10 

-2 

Note: See the notes to Chart 6. 

-9 

-7 

-11 

-14 

-20 

-2 

-26 

-24 

-22 

-15 

-40 

-33 

-30 

-21 

-11 

-38 

-40 

-48 

-4 

-14 

11 

-1 

10 

-31 

-9 

-10 

0 

6 

0 

-83 

Competitive pressures and, to a lesser extent, risk perceptions contributed to the 
easing of overall terms and conditions of euro area banks (see Table 7).  

Among the largest euro area countries, competitive pressures contributed to an 
easing of overall credit terms and conditions in all countries. In addition, risk 
perceptions contributed to an easing in the Netherlands and Spain, while banks’ cost 
of funds and balance sheet constraints and their risk tolerance had a neutral impact 
in most countries. 

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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-5 

-3 

-22 

-1 

-10 

0 

0 

0 

0 

-1 

0 

0 

-22 

-14 

-11 

-14 

-50 

-33 

-19 

-17 

-11 

-15 

-20 

-48 

-3 

-3 

0 

0 

0 

-5 

0 

-11 

0 

0 

-31 

-34 

0 

-3 

0 

0 

0 

0 

-1 

-3 

0 

0 

0 

0 

Note: The net percentages for responses to questions related to the factors are defined as the difference between the percentage of 
banks reporting that the given factor contributed to a tightening and the percentage reporting that it contributed to an easing. 

The euro area bank lending survey – Second quarter of 2018 

16 

  
  
2.2.3 

Rejection rate for housing loans remained unchanged 

According to euro area banks, the net share of rejected 
applications for loans to households for house 
purchase remained unchanged in the second quarter 
of 2018 (0%, unchanged from the previous survey 
round; see Chart 7).  

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

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) 

Q3 2017

Q4 2017

Q1 2018

Q2 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.  

2.2.4 Net demand for housing loans increased further 

In the second quarter of 2018, banks reported a further net increase in demand for 
housing loans (23%, after 5% in the previous quarter; see Chart 8 and overview 
table), which was higher than expected by banks in the previous survey round and 
above the historical average for housing loan demand. 

Net demand increased in all of the largest euro area countries and continued to 
mainly be driven by the low general level of interest rates, favourable housing market 
prospects and consumer confidence. The use of alternative sources of finance had a 
slight dampening effect on demand (see Chart 8 and Table 8). 

Across all of the largest euro area countries, the general level of interest rates 
continued to have a substantially positive effect on demand for housing loans. 
Housing market prospects had a positive impact on demand in all large countries, 
with the exception of France, where the effect was neutral, and consumer confidence 
had a positive impact in all countries, except for Italy where there was no change 
reported in net terms. The contribution of other financing needs was positive in the 
Netherlands and, to a lesser extent, Germany, while it had a negative impact on 
demand in the remaining large countries. The use of alternative finance had a 
dampening effect on housing loan demand in Spain and Germany.  

The euro area bank lending survey – Second quarter of 2018 

17 

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

(net percentages of banks reporting positive 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

2
Q

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

300

250

200

150

100

50

0

-50

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

DE

ES

FR

IT

NL

Notes: See the notes to 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 

Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

10 

24 

33 

-38 

10 

50 

23 

31 

33 

0 

20 

50 

Note: See the notes to Chart 8. 

15 

10 

44 

-7 

0 

49 

13 

7 

22 

7 

0 

48 

2 

0 

0 

-2 

5 

21 

1 

2 

-6 

-8 

-5 

31 

22 

21 

33 

12 

30 

52 

31 

34 

56 

29 

20 

51 

-3 

-5 

-3 

-9 

-15 

-11 

0 

3 

-6 

2 

3 

0 

For the third quarter of 2018, euro area banks expect net demand for housing loans 
to continue increasing (19%).  

2.3 

Consumer credit and other lending to households 

2.3.1 

Credit standards for consumer credit and other lending to 
households eased  

In the second quarter of 2018, credit standards for consumer credit and other lending 
to households eased (-3%, unchanged from the previous quarter; see Chart 9 and 

The euro area bank lending survey – Second quarter of 2018 

18 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
overview table). The net percentage was lower than the historical average, but the 
net easing was less than expected in the previous quarter.  

Among the largest euro area countries, credit standards for consumer credit and 
other lending to households eased in Spain and Germany and remained unchanged 
in the other large countries. 

According to euro area banks, competitive pressure from other banks and non-
banks, lower risk perceptions regarding the general economic situation and outlook 
and consumers’ creditworthiness had an easing impact on credit standards, while 
banks’ risk tolerance and their costs of funds and balance sheet constraints 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

10

0

-10

-20

-30

-40

6
1
0
2

2
Q

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

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

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

DE

ES

FR

IT

NL

10

0

-10

-20

-30

-40

Notes: See the notes to 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 regulation and legislation. 

Across the largest euro area countries, risk perceptions contributed to an easing of 
credit standards in the Netherlands and Spain. In Spain and Germany, banks 
reported competition as a factor contributing to an easing of credit standards in net 
terms, while banks’ higher risk tolerance had an easing impact in Spain only. Finally, 
there continues to be no reported impact of cost of funds and balance sheet 
constraints on credit standards across the largest euro area countries. 

Looking ahead to the third quarter of 2018, euro area banks expect a further net 
easing of credit standards for consumer credit and other lending to households 
(-6%). 

The euro area bank lending survey – Second 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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

-4 

-6 

-10 

0 

0 

0 

-4 

-3 

-20 

0 

0 

0 

-3 

0 

-7 

-4 

0 

-2 

0 

-7 

0 

0 

-13 

-14 

-2 

-9 

0 

0 

0 

0 

-1 

0 

-10 

0 

0 

0 

Note: See the notes to Chart 9. 

2.3.2 

Terms and conditions for consumer credit and other lending to 
households eased further 

Banks’ overall terms and conditions applied when granting new consumer credit and 
other lending to households eased further in the second quarter of 2018 (see Chart 
10 and Table 10). The narrowing of margins on average loans continued to be the 
main driver of the easing, while margins on riskier loans eased only slightly. 
Collateral requirements and other terms and conditions remained 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

2
Q

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

margins on average loans
collateral requirements

margins on riskier loans
other terms and conditions

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
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 – Second 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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-4 

-6 

-30 

0 

0 

0 

Note: See the notes to Chart 10. 

-8 

-6 

-30 

-7 

-10 

0 

-12 

-13 

-30 

-5 

-10 

0 

-12 

-13 

-30 

-13 

-20 

0 

-1 

-6 

0 

0 

10 

0 

-2 

-6 

0 

0 

0 

0 

Across the largest euro area countries, overall terms and conditions on consumer 
credit and other lending to households eased in all countries with the exception of 
the Netherlands, where they remained unchanged. Margins on average loans 
narrowed in most countries, except for the Netherlands, while margins on riskier 
loans narrowed only in Germany and remained unchanged elsewhere. 

Competitive pressures remained the predominant factor contributing to the net 
easing of terms and conditions for new consumer credit and other lending to 
households (see Table 11). Risk perceptions also contributed to the easing, while the 
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 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Q1 2018 

Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

-1 

-3 

-10 

0 

0 

0 

1 

0 

0 

0 

0 

0 

-8 

-6 

-20 

2 

-20 

0 

-10 

-9 

-20 

-7 

-20 

0 

-4 

-3 

0 

0 

0 

-5 

0 

-10 

0 

0 

-40 

-41 

-1 

-3 

0 

0 

0 

0 

-1 

0 

0 

0 

0 

0 

Note: The net percentages for responses to questions related to the factors are defined as the difference between the percentage of 
banks reporting that the given factor contributed to a tightening and the percentage reporting that it contributed to an easing. 

Across the largest euro area countries, competitive pressures contributed to the net 
easing of overall terms and conditions in all countries, with the exception of the 
Netherlands. Banks in the Netherlands and Spain reported an easing impact from 
risk perceptions, while the impact was neutral in the other large countries. Banks’ 
cost of funds and balance sheet constraints and their risk tolerance had a neutral 
impact on consumer credit and other lending to households in all large countries. 

The euro area bank lending survey – Second quarter of 2018 

21 

  
  
2.3.3 

Rejection rate for consumer credit and other lending to households 
continued to decrease 

The net share of rejected applications for consumer 
credit and other lending to households decreased in 
the second quarter of 2018 according to reporting 
banks (-3%, from -7% in the previous survey round; 
see Chart 11). 

Across the largest euro area countries, the rejection 
rate declined for banks in Spain and Italy, while it 
remained unchanged in the other large countries. 

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) 

Q3 2017

Q4 2017

Q1 2018

Q2 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. 

2.3.4 

Net demand for consumer credit and other lending to households 
increased further 

According to euro area banks, net demand for consumer credit and other lending to 
households increased further in the second quarter of 2018 (net percentage of 25%, 
after 14% in the previous quarter; see Chart 12 and overview table), remaining 
above its historical average and higher than expected in the previous survey round.  

Across the largest euro area countries, net demand increased everywhere except 
the Netherlands, where it decreased.  

Among the factors driving demand for consumer credit and other lending to 
households at the euro area level, consumer confidence, financing needs for 
spending on durable consumer goods and the low general level of interest rates 
continued to contribute to the net increase in demand (see Chart 12). Other factors, 
such as the use of alternative finance (like internal finance out of savings, loans from 
other banks and other sources of external finance) and consumption expenditure 
financed through real-estate guaranteed loans had a neutral impact on demand.  

Across the largest euro area countries, consumer confidence and the low general 
level of interest rates contributed to increased demand for consumer credit and other 
lending to households in all countries. Spending on durable goods had a positive 
impact in all countries, except in France, while the use of alternative finance 
dampened loan demand in the Netherlands and Spain, contributed to increased 
demand in France, and had a broadly neutral impact in Germany and Italy. 

The euro area bank lending survey – Second quarter of 2018 

22 

 
 
 
 
 
 
 
225

200

175

150

125

100

75

50

25

0

-25

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

(net percentages of banks reporting positive 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

2
Q

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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
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

7
1
0
2

3
Q

7
1
0
2

4
Q

8
1
0
2

1
Q

8
1
0
2

2
Q

DE

ES

FR

IT

NL

Notes: See the notes to 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 

Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018  Q1 2018  Q2 2018 

Euro area 

Germany 

Spain 

France 

Italy 

Netherlands 

18 

9 

40 

7 

30 

40 

20 

25 

50 

0 

20 

41 

17 

9 

40 

8 

10 

40 

21 

22 

50 

9 

10 

41 

0 

0 

0 

0 

0 

3 

0 

0 

0 

0 

0 

0 

17 

3 

30 

14 

30 

40 

17 

13 

40 

9 

20 

41 

-3 

-4 

-17 

0 

3 

0 

0 

-1 

-3 

4 

0 

-6 

Note: See the notes to Chart 12. 

For the third quarter of 2018, euro area banks expect a continued increase in net 
demand for consumer credit and other lending to households (16%). 

The euro area bank lending survey – Second quarter of 2018 

23 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 

Ad hoc questions7  

3.1 

Banks’ access to retail and wholesale funding 

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

(net percentages of banks reporting deteriorated market access) 

retail funding

debt securities

money markets

securitisation

20

10

0

-10

-20

-30

Q2
2016

Q3
2016

Q4
2016

Q1
2017

Q2
2017

Q3
2017

Q4
2017

Q1
2018

Q2
2018

Q3
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”. 

As in previous survey rounds, the July 2018 survey 
questionnaire included a question to assess the extent 
to which the situation in financial markets affected 
banks’ access to retail and wholesale funding. Banks 
were asked to indicate 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 second quarter of 2018, euro area banks 
reported in net terms that access to retail funding 
improved. As regards wholesale funding, according to 
reporting banks, access to money markets, debt 
securities issuance and access to securitisation 
deteriorated (see Chart 13 and Table 13).8  

Looking ahead to the third quarter of 2018, euro area 
banks expect access to retail funding to be broadly 
unchanged. With respect to wholesale funding, they 

expect continued deterioration in access to debt securities issuance and money 
markets and broadly no change in access to securitisation. 

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

(net percentages of banks reporting deteriorated market access) 

Retail funding 

Interbank unsecured 
money market 

Wholesale debt securities 

Securitisation 

Q1 2018 

Q2 2018 

-1 

-3 

Note: See the note to Chart 13. 

-1 

3 

1 

9 

-2 

4 

7   The harmonised BLS aggregation method introduced in the April 2018 survey has led to some 
revisions in the aggregate BLS results, in particular for some ad hoc questions (see Box 1). 

8   As regards the results on securitisation, there are a large number of banks that replied “not applicable”, 
as  this  source  of  funding  is  not  relevant  for  them  (between  36%  and  44%,  depending  on  the  type  of 
securitisation, in the second quarter of 2018). 

The euro area bank lending survey – Second quarter of 2018 

24 

  
                                                                      
 
3.2 

Banks’ adjustment to regulatory and supervisory action9 

The July 2018 BLS questionnaire included two biannual ad hoc questions to assess 
the extent to which new regulatory or supervisory requirements affected banks’ 
lending policies via the potential impact on their capital, leverage, liquidity position or 
provisioning and the credit conditions that they apply to loans. These new questions 
cover regulatory or supervisory actions that have recently been implemented or that 
are expected to be implemented in the near future. Furthermore, banks were also 
asked to indicate the effect of these actions on their funding conditions. 

Chart 14  
Impact of regulatory or supervisory action on banks’ 
risk-weighted assets, capital and funding conditions 

(net percentages of banks) 

total assets

capital

risk-weighted assets

banks' funding conditions

40

20

0

-20

-40

H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018

(exp.)

Notes: For “total assets”, “risk-weighted assets” and “capital”, 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”. For “banks’ funding conditions”, the net 
percentages are defined as the difference between the sum of the percentages for 
“experienced a considerable tightening” and “experienced a moderate tightening” and 
the sum of the percentages for “experienced a moderate easing” and “experienced a 
considerable easing”. 

Euro area banks replied that, in relation to regulatory or 
supervisory actions, their total assets and liquid assets 
increased in the first half of 2018 (see Chart 14 and 
Table 14). They also reported an increase in their risk-
weighted assets, owing to an increase in average 
loans, while they continued to report a decrease in 
riskier loans. Euro area banks also reported that they 
were continuing to strengthen their capital positions, 
both through retained earnings and capital issuance. 
Moreover, they continued to indicate that regulatory or 
supervisory actions had had a net easing impact on 
their funding conditions. 

The impact of supervisory or regulatory actions on 
banks’ credit standards during the first half of 2018 had 
a slightly tightening effect across all loan categories 
(see Chart 15 and Table 15). Supervisory or regulatory 
actions had a broadly neutral impact on credit margins 
for SMEs and large enterprises and for consumer credit 
and other lending to households, while they had a 
tightening impact on housing loans. 

Table 14 
Impact of regulatory or supervisory action on banks’ risk-weighted assets, capital and 
funding conditions 

(net percentages) 

Total assets 

Risk-weighted assets 

Capital 

Total  

Liquid 
assets 

Total  

Average 
loans 

Riskier 
loans 

H2 2017 

H1 2018 

1 

6 

-1 

9 

5 

6 

9 

12 

-8 

-8 

Total  

26 

21 

Note: See the notes to Chart 14. 

Retained 
earnings 

Capital 
issuance 

Impact on 
banks' 
funding 
conditions 

21 

18 

15 

17 

-7 

-4 

Looking ahead to the second half of 2018, euro area banks expect regulatory or 
supervisory actions to have a tightening impact on credit standards for loans to large 

9   Some figures were revised due to changes in the weighting scheme for aggregating national results in 

the Netherlands. 

The euro area bank lending survey – Second quarter of 2018 

25 

 
  
                                                                      
 
enterprises and housing loans, while they expect the impact on loans to SMEs and 
on consumer credit to be broadly neutral. 

Chart 15  
Contribution of regulatory or supervisory action to the 
tightening of banks’ credit standards and margins  

Table 15 
Contribution of regulatory or supervisory action to the 
tightening of banks’ credit standards and margins 

(net percentages of banks) 

(net percentages) 

loans to SMEs
loans to large firms
loans to households for house purchase
consumer credit and other lending to households

credit standards

credit margins

10

5

0

-5

-10

H1
2016

H2
2016

H1
2017

H2
2017

H1
2018

H2
2018
(exp.)

H1
2016

H2
2016

H1
2017

H2
2017

H1
2018

H2
2018
(exp.)

Impact of regulatory or supervisory action on the 
tightening of credit 

standards 

margins 

H2 2017 

H1 2018 

H2 2017 

H1 2018 

Impact on loans and 
credit lines to SMEs 

Impact on loans and 
credit lines to large 
enterprises 

Impact on loans to 
households for house 
purchase 

Impact on consumer 
credit and other 
lending to households 

-1 

-1 

0 

1 

2 

3 

3 

1 

-3 

-4 

-1 

2 

1 

1 

6 

-1 

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 results shown are 
calculated as a percentage of the number of banks which did not reply “not applicable”. 

Note: See the notes to Chart 15. 

3.3 

Factors determining the level of banks’ lending margins 

Chart 16  
Significance of the factors determining the level of 
banks’ lending margins 

(percentages of banks; over the past six months) 

competition
profitability target
perception of risk
bank's capital position

market financing
liquidity position
operating costs

70

60

50

40

30

20

10

0

The July 2018 survey questionnaire included an ad hoc 
question on the significance of different factors in 
determining the level of banks’ lending margins over the 
past six months. Banks were also asked to indicate how 
the significance of the factors changed from the 
beginning of 2014 to the end of 2017. For the 
responses referring to the past six months, the results 
presented show the percentages of banks that reported 
that the factor was somewhat or very significant in 
determining lending margins. For the results showing 
the change in significance between the beginning of 
2014 and the end of 2017, net percentages are shown. 
Banks were asked about lending margins on loans to 
enterprises, loans to households for house purchase, 
and consumer credit and other lending to households.  

loans to enterprises

loans to households for
house purchase

consumer credit and other
lending

Notes: The percentages are defined as the sum of the percentages for “somewhat 
significant” and “very significant”. Bank’s lending margin is defined as the difference 
between the lending rate and the relevant market reference rate. The relevant market 
reference rate (e.g. EURIBOR, LIBOR or the interest rate swap of a corresponding 
maturity for fixed-rate loans) depends on the characteristics of the loan and can differ 
over time. 

With respect to the determinants of euro area banks’ 
lending margins over the past six months, competition 
and profitability targets were reported to be the most 
significant factors for loans to enterprises (68% and 
56%, respectively), loans to households for house 

purchase (68% and 56%, respectively) and consumer credit and other lending to 

The euro area bank lending survey – Second quarter of 2018 

26 

 
 
 
 
 
households (47% and 54%, respectively) (see Chart 16). A substantial share of 
banks also reported that risk perceptions had been a significant factor over the past 
six months (loans to enterprises: 50%; loans to households for house purchase: 
40%; consumer credit and other lending to households: 46%). Across the three 
categories of loans, risk perceptions were least relevant for housing loans, which 
tend to have the highest levels of collateral. The capital position of banks was, in 
general, a less significant determinant of margins for loans to households for house 

Chart 17  
Change in significance of the factors determining the 
level of banks’ lending margins 

(net percentages of banks; from 2014 to 2017) 

competition
profitability target
perception of risk
bank's capital position

market financing
liquidity position
operating costs

60

50

40

30

20

10

0

loans to enterprises

loans to households for
house purchase

consumer credit and other
lending

Notes: Bank’s lending margin is defined as the difference between the lending rate and 
the relevant market reference rate. The relevant market reference rate (e.g. EURIBOR, 
LIBOR or the interest rate swap of a corresponding maturity for fixed-rate loans) 
depends on the characteristics of the loan and can differ over time. 

purchase (38%) and for consumer credit and other 
lending to households (27%) than it was for loans to 
enterprises (44%), which on average tend to be larger. 
In general, banks’ market financing, liquidity position 
and operating costs tended to be less significant 
determinants of margins across the three loan 
categories. 

Regarding the determinants of euro area banks’ 
lending margins between 2014 and 2017, the results 
are similar to the past six months. Specifically, the 
factors that increased most in significance in net 
percentage terms were also competition (loans to 
enterprises: 50%; housing loans: 51%; consumer 
credit: 36%) and profitability targets (loans to 
enterprises: 42%; housing loans: 37%; consumer 
credit: 32%) (see Chart 17). Banks’ perception of risk 
and capital positions also substantially increased for 
loans to enterprises (26% and 34% respectively), 
loans to households for house purchase (25% for both 
factors) and consumer credit (28% and 13%, 

respectively). Banks’ market financing, liquidity position and operating costs showed 
a smaller increase in significance across all loan categories.  

3.4 

The impact of banks’ non-performing loan ratios on their 
lending policies 

The July 2018 survey questionnaire included an ad hoc question on the impact of 
banks’ NPL ratios on their lending policy and the factors through which it contributed 
to changes. Banks were asked about the impact from 2014 to 2017, over the past six 
months and over the next six months. They were asked about the impact on loans to 
enterprises, loans to households for house purchase and consumer credit and other 
lending to households. 

The euro area bank lending survey – Second quarter of 2018 

27 

 
Chart 18  
Impact of NPL ratio on banks’ credit standards and 
terms and conditions 

(net percentages of banks) 

from 2014 to 2017
over the past six months
over the next six months

20

15

10

5

0

loans to
enterprises

loans to
households
for house
purchase

consumer
credit and
other lending

Impact on bank's credit standards

Note: The NPL ratio is defined as the stock of gross NPLs on a bank’s balance sheet as 
a percentage of the gross carrying amount of loans. 

In relation to credit standards, a positive net percentage 
of euro area banks reported that their NPL ratios had 
led to a tightening across all categories of loans from 
2014 to 2017 (loans to enterprises: 17%; housing loans: 
12%; consumer credit: 15%) (see Chart 18). Over the 
past six months, the net percentage of banks reporting 
that their NPL ratios had led to a tightening in credit 
standards fell (loans to enterprises: 7%; housing loans: 
5%; consumer credit: 2%). Moreover, a lower share of 
banks reported that they expected their NPL ratios to 
have a tightening impact on credit standards over the 
next six months (loans to enterprises: 4%; housing 
loans: 1%; consumer credit: 1%). 

loans to
enterprises

loans to
households
for house
purchase

consumer
credit and
other lending

Impact on bank's credit terms and
conditions

As regards terms and conditions, from 2014 to 2017 a 
positive net percentage of euro area banks reported 
that their NPL ratios had led to a tightening across all 
categories of loans (loans to enterprises: 9%; housing 
loans: 7%; consumer credit: 9%), albeit less than the 
impact on credit standards (see Chart 18). Over the past six months, the impact on 
loans to enterprises (9%) and consumer credit (9%) has been similar, but it has 
decreased for housing loans (4%). Over the next six months, the share of banks that 
expect their NPL ratios to have a tightening impact on terms and conditions will 
remain broadly the same for loans to enterprises (8%), but will decrease slightly for 
housing loans (2%) and for consumer credit (6%). 

Chart 19 
Contribution of factors through which the NPL ratio affects banks’ policies on lending 
to enterprises and households 

(net percentages of banks) 

from 2014 to 2017
over the past six months
over the next six months

25

20

15

10

5

0

-5

costs related to
capital position

costs related to
balance sheet
clean-up
operations

pressure related
to supervisory or
regulatory
requirements

access to market
financing

liquidity position perception of risk

risk tolerance

Notes: See the note to Chart 18. 

With regard to the factors through which banks’ NPL ratios impact their lending 
policies (credit standards and terms and conditions), banks reported that from 2014 
to 2017 their risk perceptions and risk tolerance predominantly drove the tightening, 
while costs related to their capital positions, balance sheet clean-up costs and 
pressure related to supervisory or regulatory requirements were also relevant (see 

The euro area bank lending survey – Second quarter of 2018 

28 

 
 
Chart 19). Over the past six months, the impact of all factors through which NPLs 
affect lending policies has decreased, but perceptions of risk, risk tolerance and the 
costs related to cleaning up the balance sheet remain relevant. Notably, the impact 
of costs relating to banks’ capital positions has been broadly unchanged over the 
past six months, in contrast to the period from 2014 to 2017. Over the next six 
months, the impact of the different factors on banks’ lending policies is generally 
expected to be broadly similar to the past six months. 

The euro area bank lending survey – Second quarter of 2018 

29 

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

Loans to small 
and medium-sized 

Loans to large 

Overall

enterprises

5

enterprises

5

Short-term loans

6

Long-term loans6

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

0

92

8

0

0

0

0

96

4

0

0

0

0

90

8

0

1

0

1

96

2

0

1

0

0

95

5

0

0

0

0

95

4

0

1

0

0

89

10

0

0

0

0

92

7

0

0

0

0

93

7

0

0

0

0

96

4

0

0

100

100

100

100

100

100

100

100

100

100

-8

-4

-3

-2

-8

-4

-2

-1

-5

-2

-3

-2

-10

-5

-6

-3

-7

-3

-3

-2

3.08

3.03

3.08

3.02

3.05

3.03

3.10

3.06

3.07

3.03

Number of banks responding

138

139

135

136

133

133

138

139

138

139

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 - Second 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

-

1

0

0

0

0

1

1

1

1

0

1

0

0

0

0

2

2

1

3

1

°

98

96

97

82

94

97

91

93

98

97

97

95

98

81

95

94

92

92

95

98

+

0

1

2

16

4

1

7

7

1

1

0

1

1

17

2

1

6

7

1

0

NetP

DI

Mean

++

NA7

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 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

2

2

-2

-3

1

-1

-2

-15

-16

-4

-2

-10

-10

-1

-2

1

-2

-3

-4

0

-6

-6

0

-1

1

-1

-1

-13

-17

-2

1

-10

-7

-1

-1

-2

1

-4

-6

2

1

1

-1

-2

-8

-2

-1

-5

-5

0

-1

0

-1

-1

-6

-1

0

-5

-3

-1

-1

1

-1

-1

-8

-2

0

-3

-3

0

2.98

3.02

3.03

3.15

3.04

3.02

2.99

3.01

3.02

3.16

3.04

3.00

3.10

3.06

3.10

3.06

3.01

3.00

0

3.02

3.01

1

-1

0

-8

-1

1

-2

-3

1

2.99

3.02

3.03

3.13

3.03

2.99

2.99

3.01

3.01

3.17

3.02

2.99

3.10

3.04

3.07

3.06

3.01

2.98

0

3.01

2.99

The euro area bank lending survey - Second 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

-

4

0

0

0

0

1

2

1

1

0

°

94

95

97

86

94

96

92

93

97

96

+

0

2

2

12

4

1

6

6

1

2

NetP

DI

Mean

++

NA7

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

0

0

0

0

0

0

0

0

0

1

3

1

2

2

2

1

1

1

2

-1

-5

-5

-8

-5

-5

-9

-10

-4

-4

3

-2

-2

-12

-4

0

-5

-5

0

-2

0

-2

-3

-4

-2

-2

-5

-5

-2

-2

2

-1

-1

-6

-2

0

-2

-3

0

3.01

3.05

3.05

3.09

3.05

3.05

2.97

3.02

3.02

3.12

3.04

3.00

3.09

3.05

3.10

3.05

3.04

3.00

-1

3.05

3.02

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 - Second 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

°

+

++

NA6

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

NetP

DI

Mean

84

16

69

92

91

91

95

91

94

29

5

7

9

5

9

6

87

12

74

94

92

94

94

92

94

23

2

5

5

5

7

5

82

17

69

92

91

91

92

89

90

28

5

7

7

7

9

10

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

-17

-16

-9

-8

3.17

3.16

-27

-6

-3

-10

-2

-5

-4

-27

-4

-14

-3

-14

-2

-5

-9

-5

-8

-6

-2

-5

-1

-2

-2

-3

-5

-2

-4

-3

3.28

3.06

3.03

3.10

3.02

3.05

3.04

3.27

3.04

3.05

3.09

3.05

3.08

3.06

-13

-11

-7

-6

3.13

3.12

-18

-3

-21

0

-10

-2

-10

0

-3

-6

-2

2

-3

-4

-5

-5

-7

-5

-1

-3

-1

1

-1

-2

-3

-2

-3

-3

3.20

3.04

3.03

3.06

3.02

2.98

3.03

3.21

3.01

3.04

3.05

3.05

3.07

3.05

-14

-17

-7

-8

3.14

3.17

-27

-7

-3

-10

-4

-5

-6

-26

-4

-5

-5

-7

-8

-10

-15

-3

-13

-2

-2

-5

-2

-2

-3

-3

-3

-4

-4

-5

3.29

3.07

3.03

3.10

3.04

3.05

3.06

3.27

3.04

3.06

3.06

3.07

3.08

3.10

-

0

2

1

2

0

0

0

0

1

2

2

2

0

0

0

0

0

2

2

2

1

0

1

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) 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 

The euro area bank lending survey - Second 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 

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

0

2

0

0

3

2

0

0

1

3

0

+

3

97

73

26

93

98

97

4

1

3

66

30

93

99

98

4

1

0

84

14

96

98

0

0

NetP

DI

Mean

++

NA2

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 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

-5

-3

-2

-1

-27

-26

-13

-13

-4

-1

-2

-1

-2

0

-1

0

-5

-3

-3

-2

-29

-27

-15

-13

-4

0

-3

-7

-2

-2

-2

-1

0

-13

3

0

-2

0

-1

-3

-1

-1

-1

0

0

-7

1

0

3

3

3

3

3

3

3

3

3

3

3

3

3.03

3.26

3.02

3.01

3.03

3.27

3.02

3.01

3.00

3.13

2.97

3.00

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 - Second 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

Apr 18

Jul 18

0

4

91

4

0

1

100

1

0

3.01

138

0

3

91

5

0

1

100

2

1

3.02

139

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 - Second 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

Loans to small 
and medium-sized 
enterprises

Loans to large 
enterprises

Overall

Short-term loans

Long-term loans

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

7

72

22

0

0

0

10

64

26

0

0

0

9

68

21

1

1

0

9

64

25

1

1

0

7

74

18

0

0

0

13

62

23

1

1

0

6

78

15

0

0

0

7

77

16

0

0

0

5

71

23

0

0

0

11

58

30

0

0

100

100

100

100

100

100

100

100

100

100

15

7

16

8

12

7

16

9

11

6

11

6

9

5

9

4

18

9

19

10

3.15

3.16

3.13

3.17

3.12

3.12

3.09

3.09

3.18

3.19

Number of banks responding

138

139

135

136

133

133

138

139

138

139

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 - Second 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

--

-

°

+

++

NA2

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

NetP

DI

Mean

0

0

0

0

0

0

0

0

0

0

11

3

2

0

6

5

6

5

3

0

73

79

82

77

77

92

86

94

91

93

17

18

15

22

14

3

8

1

2

1

0

0

0

0

1

0

0

0

0

0

0

1

0

0

2

0

0

0

4

5

12

7

15

12

5

-8

4

-2

4

1

6

15

13

22

9

-2

2

-3

-1

1

6

4

8

6

3

-4

2

-1

2

0

3

7

6

11

5

-1

1

-2

0

0

3.12

3.07

3.15

3.12

3.05

2.92

3.04

2.98

3.04

3.01

3.06

3.15

3.13

3.22

3.10

2.98

3.02

2.97

2.99

3.01

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 - Second 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

Loans to small 
and medium-sized 
enterprises

Loans to large 
enterprises

Overall

Short-term loans

Long-term loans

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

5

88

7

0

0

0

2

93

5

0

0

0

3

91

5

0

1

0

2

92

4

0

1

0

5

85

10

0

0

0

2

92

6

0

1

0

3

89

7

0

0

0

1

93

5

0

0

0

5

89

6

0

0

0

2

93

5

0

0

100

100

100

100

100

100

100

100

100

100

-2

-1

-3

-2

-1

-1

-2

-1

-5

-2

-4

-2

-4

-2

-4

-2

0

0

-3

-1

3.02

3.03

3.01

3.02

3.05

3.04

3.04

3.04

3.00

3.03

Number of banks responding

138

139

135

136

133

133

138

139

138

139

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 - Second 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

Loans to small 
and medium-sized 
enterprises

Loans to large 
enterprises

Overall

Short-term loans

Long-term loans

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

3

72

25

0

0

0

1

80

20

0

0

0

2

71

26

0

1

0

1

80

18

0

1

0

4

78

18

0

0

0

1

81

17

0

1

0

2

85

13

0

0

0

3

82

14

0

0

0

3

71

26

0

0

0

1

77

22

0

0

100

100

100

100

100

100

100

100

100

100

22

11

19

9

25

12

17

8

14

7

16

8

11

6

11

5

24

12

21

10

3.22

3.19

3.25

3.17

3.14

3.16

3.11

3.11

3.24

3.21

Number of banks responding

138

139

135

136

133

133

138

139

138

139

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 - Second 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 

(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

Apr 18

Jul 18

Apr 18

Jul 18

0

1

86

12

0

0

100

-11

-6

3.12

134

1

0

90

9

0

0

100

-8

-3

3.07

134

0

3

91

6

0

0

100

-3

-2

3.03

140

0

1

95

4

0

0

100

-3

-2

3.03

140

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 - Second 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

-

0

0

0

0

0

0

1

°

98

90

94

95

96

95

97

+

1

9

2

5

4

4

2

NetP

DI

Mean

++

NA6

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

0

3

0

0

0

0

1

1

1

0

0

0

0

-1

-9

-6

-6

-3

-4

-4

0

-9

-5

-5

-4

-4

-1

0

-5

-4

-3

-1

-2

-2

0

3.01

3.00

-5

-4

-2

-2

-2

3.10

3.08

3.09

3.08

3.06

3.05

3.03

3.04

3.04

3.04

0

3.04

3.01

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 - Second 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

Non-interest rate charges5

--

0

0

0

0

0

0

0

0

-

2

2

2

1

1

0

1

0

°

+

++

NA6

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

NetP

DI

Mean

87

11

66

84

99

97

97

95

100

31

12

0

2

3

4

0

0

1

0

0

0

0

0

0

0

0

2

0

0

0

0

0

-6

-9

-3

-4

3.06

3.09

-26

-4

-30

-9

-13

-2

-16

-5

0

7

-4

0

1

1

-1

-2

-3

0

0

3

-2

0

1

0

0

-1

-1

0

3.26

3.04

3.00

2.93

3.04

3.00

2.99

3.31

3.10

2.99

3.01

3.02

3.03

3.00

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.

The euro area bank lending survey - Second 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

0

1

0

1

0

1

0

0

0

3

1

0

+

1

99

78

20

95

97

99

5

2

1

69

28

95

99

98

5

1

0

84

11

97

96

0

2

NetP

DI

Mean

++

NA2

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

1

0

0

0

1

0

0

0

0

0

0

0

1

0

0

0

1

0

0

2

2

2

2

-5

0

-2

0

3.05

3.00

-22

-19

-11

-10

3.22

3.21

-3

0

-5

-1

-2

0

-2

0

-1

-2

3.03

3.05

0

0

3.00

3.01

3.02

3.00

-28

-28

-14

-15

3.28

3.29

-4

0

1

-8

1

0

-5

-1

0

-8

1

-2

-2

-2

3.04

3.05

0

0

-1

3.00

3.01

0

2.99

3.00

-4

-4

3.08

3.08

1

0

0

2.99

2.99

-1

3.00

3.02

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 - Second 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

-

0

0

0

0

0

0

1

°

99

95

95

98

95

94

97

+

0

4

4

2

5

0

2

NetP

DI

Mean

++

NA2

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

0

0

0

0

0

0

1

1

1

0

0

6

0

1

-4

-4

-3

-6

0

-2

0

-4

-4

-2

-5

0

-1

0

-2

-2

-1

-3

0

-1

0

2.99

3.00

-2

-2

-1

-2

0

3.05

3.04

3.03

3.06

3.00

3.04

3.04

3.02

3.05

3.00

-1

3.02

3.01

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 - Second 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

-

1

1

0

0

0

0

2

°

90

85

97

95

98

100

98

+

9

13

2

0

1

0

0

NetP

DI

Mean

++

NA1

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

0

0

0

0

0

0

0

0

1

5

0

0

0

-4

-8

-12

-1

0

-3

0

0

-12

-2

0

-1

0

2

-2

-6

-1

0

-2

0

0

-4

3.04

3.08

-6

-1

0

-1

0

1

3.12

3.01

3.00

3.03

3.00

3.00

3.13

3.02

3.00

3.01

3.00

2.98

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 - Second 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

1

0

0

0

1

0

0

0

2

0

0

0

+

0

99

89

10

94

99

95

5

1

4

82

17

95

96

97

95

99

99

1

4

0

3

0

0

NetP

DI

Mean

++

NA2

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

0

0

0

0

0

0

4

0

0

0

0

0

0

1

0

0

0

1

0

0

1

2

1

1

-1

-8

-4

-1

1

-10

-5

-1

-5

-3

-16

-17

-6

-4

0

-4

1

-2

-5

-4

2

-3

0

0

-1

-4

-2

0

-2

-8

-5

-2

0

-2

0

-1

0

3.01

2.99

-5

3.08

3.10

-3

3.04

3.05

0

3.01

3.01

-1

3.05

3.03

-9

3.17

3.17

-4

3.10

3.08

-2

3.04

3.04

1

3.00

2.98

-2

3.04

3.03

0

0

2.99

3.00

3.02

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 - Second 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

Apr 18

Jul 18

Apr 18

Jul 18

0

4

91

4

0

1

100

0

0

3.00

134

0

7

86

7

0

1

100

0

0

3.00

134

0

9

88

2

0

1

100

-7

-4

2.93

140

0

5

92

2

0

1

100

-3

-1

2.97

140

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 - Second 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

Apr 18

Jul 18

Apr 18

Jul 18

0

16

63

20

1

0

100

5

3

3.06

134

0

5

66

27

1

0

100

23

12

3.25

134

0

4

78

16

2

0

100

14

8

3.16

140

0

2

72

24

2

0

100

25

13

3.27

140

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 - Second 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

-

3

1

1

3

4

7

6

1

°

+

++

NA4

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

NetP

DI

Mean

72

84

67

93

91

91

91

98

25

15

30

4

4

2

3

0

0

0

3

0

0

0

0

0

0

0

0

0

0

0

0

0

10

15

22

6

-2

-5

-4

-1

23

13

31

1

0

-5

-3

-1

5

8

13

3

-1

-2

-2

-1

11

7

17

1

0

-3

-1

-1

3.10

3.23

3.16

3.27

3.05

2.98

3.13

3.34

3.01

3.00

2.95

2.95

2.96

2.99

2.97

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 - Second 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

2

2

2

°

+

++

NA2

Apr 18

Jul 18

Apr 18

Jul 18

Apr 18

Jul 18

NetP

DI

Mean

80

79

82

89

98

93

98

20

21

17

0

0

5

0

0

0

0

0

0

0

0

0

0

1

11

0

0

0

18

17

17

0

-3

-4

-2

20

21

17

0

-2

3

-2

9

8

8

0

-2

-2

-1

10

10

9

0

-1

1

-1

3.19

3.17

3.16

3.20

3.21

3.17

3.01

3.00

2.97

2.96

2.98

2.98

3.03

2.98

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 - Second 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

Apr 18

Jul 18

Apr 18

Jul 18

0

1

85

13

0

0

100

-12

-6

3.12

134

0

2

86

12

0

0

100

-9

-5

3.09

134

0

1

91

9

0

0

100

-8

-4

3.08

140

0

2

91

7

0

0

100

-6

-3

3.06

140

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 - Second 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

Apr 18

Jul 18

Apr 18

Jul 18

0

11

61

29

0

0

100

18

9

3

134

0

1

79

19

1

0

100

19

10

3

134

0

1

76

23

0

0

100

22

11

3

140

0

1

83

16

0

0

100

16

8

3.16

140

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 - Second 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? 

Over the past three months 

Over the next three months 

°

+

+ +

NA2

NetP Mean

Std. 
dev.

--

°

+

+ +

NA2

NetP Mean

Std. 
dev.

(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

--

0

0

0

0

0

3

0

0

-

0

7

1

8

89

87

91

85

6

76

11

79

5

5

54

50

7

4

1

2

0

0

0

1

0

0

0

0

0

0

0

0

3

3

6

6

18

7

40

44

-

0

6

1

6

91

88

89

85

2

76

14

71

0

0

56

53

0

0

0

0

0

0

0

0

4

2

1

1

2

6

1

1

0

0

0

0

0

0

0

0

5

5

9

9

20

9

42

46

-4

4

0

5

0

7

-1

-1

3.04

0.20

2.96

0.30

3.00

0.15

2.93

0.28

2.99

0.24

2.91

0.47

3.02

0.14

3.02

0.15

-7

2

1

6

5

3.07

0.28

2.97

0.35

2.99

0.16

2.93

0.33

2.93

0.28

13

2.83

0.47

2.94

0.33

2.93

0.31

5

5

2

Ability to transfer credit risk off balance sheet

0

3

59

0

1

36

3.00

0.38

0

2

58

3

0

38

-1

3.00

0.26

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 - Second quarter of 2018

A24

Question 120
In connection with the new regulatory or supervisory actions (*), has your bank: increased/decreased total 
assets; increased/decreased risk-weighted assets; increased/decreased its capital position; experienced an 
easing/tightening of its funding conditions over the past six months; and/or does it intend to do so over the 
next six months?
(in percentages, unless otherwise stated)

Over the past six months

Total assets of which:  

Liquid assets1

Risk-weighted assets of which: 

Average loans

Riskier loans

Capital of which: 

Retained earnings

Capital issuance2

Impact on your bank’s funding conditions

Over the next six months

Total assets of which:  

Liquid assets1

Risk-weighted assets of which: 

Average loans

Riskier loans

Capital of which: 

Retained earnings

Capital issuance2

Impact on your bank’s funding conditions

--

0

0

0

0

0

0

0

0

0

1

0

1

0

1

0

0

0

0

-

8

4

7

3

11

8

2

2

1

4

3

5

3

9

0

0

1

1

°

76

84

78

82

79

61

74

68

92

85

91

76

83

83

66

73

72

88

+

14

12

13

14

3

27

18

19

5

8

6

16

13

5

31

24

15

8

+ +

NA3

NetP

Mean

Std. dev.

No of 
banks

0

0

0

0

0

2

2

0

0

0

0

0

0

0

1

0

1

0

2

1

2

1

6

1

3

12

2

2

1

2

1

2

1

3

11

2

6

9

6

12

-8

21

18

17

-4

4

3

9

9

-5

32

24

15

-7

3.1

3.1

3.1

3.1

2.9

3.2

3.2

3.2

3.0

3.0

3.0

3.1

3.1

2.9

3.3

3.2

3.2

3.1

0.51

0.43

0.49

0.44

0.42

0.67

0.55

0.46

0.26

0.43

0.31

0.53

0.42

0.46

0.54

0.47

0.46

0.33

149

149

149

149

149

149

149

149

149

149

149

149

149

149

149

149

149

149

(*) Please consider regulatory or supervisory actions relating to capital, leverage, liquidity or provisioning that have recently been approved/implemented or that are 
expected to be approved/implemented in the near future.
1) Liquid assets should be defined as freely transferable assets that can be converted quickly into cash in private markets within a short time frame and without significant 
loss in value, in line with the European Commission Delegated Act of 10.10.2014 to supplement Regulation (EU) 575/2013 with regard to liquidity coverage requirement for 
Credit Institutions (C (2014) 7232 final). 
2) Capital issuance includes the issuance of shares and hybrid instruments, as well as capital injections by, inter alia, national or supra-national public authorities. 
3) “NA” (not applicable) includes banks which do not have any business in or exposure to this category.
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. Figures may not exactly add up due to rounding. The number of banks responding (No of banks) refers to all participating 
banks which have business in or exposure to the respective lending category. Std. dev. denotes standard deviation.

The euro area bank lending survey - Second quarter of 2018

A25

Question 121

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

(in percentages, unless otherwise stated)

Loans and credit lines to enterprises 

Loans to households

Small and medium-sized 
enterprises

Large enterprises

For house purchase

Consumer credit and other lending

(i) Credit standards

Over the past six months

--

-

○

+

+ +

NA1

Net Percentage

Mean

Standard deviation

Number of banks responding

Over the next six months

--

-

○

+

+ +

NA1

Net Percentage

Mean

Standard deviation

Number of banks responding

(ii) Credit margins

Over the past six months

--

-

○

+

+ +

NA1

Net Percentage

Mean

Standard deviation

Number of banks responding

Over the next six months

--

-

○

+

+ +

NA1

Net Percentage

Mean

Standard deviation

Number of banks responding

0

3

94

1

0

1

2

3

0

136

0

2

95

1

0

1

1

3

0

136

0

4

92

3

0

1

1

3

0

136

0

7

89

3

0

1

4

3

0

136

0

3

96

0

0

1

3

3

0

133

0

10

88

1

0

1

9

3

0

133

0

2

95

2

0

1

1

3

0

133

0

5

90

4

0

1

0

3

0

133

0

3

96

0

0

2

3

3

0

134

0

3

95

0

0

2

3

3

0

134

0

9

84

3

0

3

6

3

0

134

0

10

85

2

0

3

8

3

0

134

0

1

97

0

0

2

1

3

0

140

0

1

97

0

0

2

1

3

0

140

0

0

95

1

0

3

-1

3

0

140

0

2

94

1

0

3

0

3

0

140

1) "NA" (not applicable) does not include banks which do not have any business in or exposure to the respective lending category. 
(*) Please consider regulatory or supervisory actions relating to capital, leverage, liquidity or provisioning that have recently been approved/implemented or that are expected to be 
approved/implemented in the near future. The number of banks responding refers to all participating banks which have business in or exposure to the respective lending category.
Notes: “- -“ = credit standards / margins have been tightened/will be tightened considerably; “-“ = credit standards / margins have been tightened/will be tightened somewhat; “o”= the 
requirements have basically not had/will not have any impact on credit standards / margins; “+” = credit standards / margins have been eased/will be eased somewhat; “++” = credit standards / 
margins have been eased/will be eased considerably. The mean and standard deviation are calculated by attributing the values 1 to 5 to the first possible answer and consequently for the 
others.

The euro area bank lending survey - Second quarter of 2018

A26

Question 134
Please indicate the significance of the factors determining the level of your bank's lending margins (i.e. the 
difference between the lending rate and the relevant market reference rate1) for new loans to enterprises and 
households. In addition, please indicate how the significance of these factors has changed for new loans 
over time.
(in percentages, unless otherwise stated)

Significance 
over the past six months

Change in significance between the beginning of 2014 and the end of 2017

Loans to enterprises

Costs related to your bank’s capital position

Your bank’s access to market financing 

Your bank’s liquidity position

Your bank's operating costs3

Your bank's perception of risk4

Competition5

Your bank's profitability target

Loans to households for house purchase

Costs related to your bank’s capital position

Your bank’s access to market financing 

Your bank’s liquidity position

Your bank's operating costs3

Your bank's perception of risk4

Competition5

Your bank's profitability target

Consumer credit and other lending to 
households

Costs related to your bank’s capital position

Your bank’s access to market financing 

Your bank’s liquidity position

Your bank's operating costs3

Your bank's perception of risk4

Competition5

Your bank's profitability target

°

+

+ +

NA2

No of 
banks

--

56

66

67

68

50

31

43

60

63

64

67

59

29

43

71

70

74

69

51

50

44

32

27

28

30

35

52

39

30

32

32

31

31

41

38

20

24

23

29

34

33

33

12

4

4

1

15

16

17

8

2

3

2

9

27

18

7

2

2

1

13

14

21

1

3

1

1

1

1

1

2

3

0

0

2

3

2

2

4

1

1

2

3

2

139

139

139

139

139

139

139

134

134

134

134

134

134

134

140

140

140

140

140

140

140

2

3

3

1

1

2

1

3

4

4

1

1

1

1

4

5

5

4

3

2

3

°

+

+ +

NA2

NetP Mean

Std. 
dev.

No of 
banks

53

56

55

71

67

43

53

60

58

58

78

63

38

55

72

63

66

75

58

51

54

28

21

22

21

22

36

31

25

23

23

16

26

34

32

13

18

18

17

30

31

28

12

7

8

2

8

17

13

6

5

6

1

4

21

8

6

3

4

0

3

9

10

1

3

1

1

1

1

1

2

3

0

0

2

3

2

2

4

1

1

2

3

2

34

15

3.45

0.88

139

3.20

0.88

139

17

3.22

0.90

139

17

3.18

0.63

139

26

3.33

0.73

139

50

3.65

0.89

139

42

3.55

0.80

139

25

16

17

13

25

51

3.28

0.80

134

3.16

0.84

134

3.19

0.88

134

3.13

0.56

134

3.29

0.70

134

3.73

0.92

134

37

3.44

0.75

134

13

3.15

0.78

140

9

9

11

28

36

3.07

0.81

140

3.08

0.81

140

3.07

0.64

140

3.29

0.77

140

3.43

0.84

140

32

3.40

0.89

140

-

4

9

11

4

2

1

1

4

8

8

3

4

3

2

3

7

7

3

3

3

3

1) The relevant market reference rate (e.g. EURIBOR, LIBOR or the interest rate swap of a corresponding maturity for fixed rate loans) depends on the characteristics of 
the loan and can differ over time.
2) “NA” (not applicable) does not include banks which have not granted any new loans in the respective lending category during the period specified.
3) Operating costs refer to your bank's administrative and maintenance costs.
4) Banks' perception of risk regarding the general economic situation and outlook, borrowers' creditworthiness and the risk related to collateral demanded.
5) Competition from other banks and non-banks, as well as from market financing.
Notes: The number of banks responding (No of banks) refers to all participating banks which have business in or exposure to the respective lending category. Std. dev. 
denotes standard deviation.

The euro area bank lending survey - Second quarter of 2018

A27

Question 135
Please indicate the impact of your bank's non-performing loan (NPL) ratio1 on your lending policy. In addition, 
please indicate the contribution of each factor through which the NPL ratio has affected or will affect your bank's 
lending policy.

(in percentages, unless otherwise stated)

Over the past six months

A)  Impact of NPL ratio on your bank's credit standards

Loans and credit lines to enterprises

Loans to households for house purchase

Consumer credit and other lending to households

B)  Impact of NPL ratio on your bank's credit terms and conditions

Loans and credit lines to enterprises

Loans to households for house purchase

Consumer credit and other lending to households

--

0

0

0

0

0

0

-

7

5

2

9

4

9

°

+

+ +

NA2

NetP

Mean

Std. 
dev.

No of 
banks

92

93

94

90

95

89

0

0

0

0

0

0

0

0

0

0

0

0

1

2

3

1

2

2

7

5

2

9

4

9

2.9

2.9

3.0

2.9

3.0

2.9

0.27

0.24

0.17

0.31

0.20

0.31

139

134

140

139

134

140

C) Contribution of factors through which the NPL ratio affects your bank's policy on lending to enterprises and households (credit standards and credit terms and 
conditions)

Contribution of your bank's cost of funds and balance sheet constraints to the NPL-related impact on your bank's lending policy 

Costs related to your bank’s capital position

Costs related to your bank's balance sheet clean-up operations3

Pressure related to supervisory or regulatory requirements4

Your bank’s access to market financing

Your bank’s liquidity position

2

1

2

0

0

4

4

6

1

1

81

81

79

90

92

6

0

6

0

1

0

0

0

0

0

Contribution of your bank's perception of risk and risk tolerance to the NPL-related impact on your bank's lending policy 

Your bank's perception of risk5

Your bank's risk tolerance

Over the next six months

A)  Impact of NPL ratio on your bank's credit standards

Loans and credit lines to enterprises

Loans to households for house purchase

Consumer credit and other lending to households

B)  Impact of NPL ratio on your bank's credit terms and conditions

Loans and credit lines to enterprises

Loans to households for house purchase

Consumer credit and other lending to households

0

0

0

0

0

0

0

0

14

10

6

4

3

11

4

8

81

88

90

91

92

86

93

88

3

1

3

3

2

3

2

2

0

0

0

0

0

0

0

0

7

14

7

9

7

1

1

1

2

3

1

2

2

0

6

2

0

0

11

9

4

1

1

8

2

6

3.0

2.9

3.0

3.0

3.0

2.9

2.9

3.0

3.0

3.0

2.9

3.0

2.9

0.46

0.32

0.49

0.12

0.12

0.43

0.32

0.32

0.29

0.24

0.38

0.26

0.35

149

149

149

149

149

149

149

139

134

140

139

134

140

C) Contribution of factors through which the NPL ratio affects your bank's policy on lending to enterprises and households (credit standards and credit terms and 
conditions)

Contribution of your bank's cost of funds and balance sheet constraints to the NPL-related impact on your bank's lending policy 

Costs related to your bank’s capital position

Costs related to your bank's balance sheet clean-up operations3

Pressure related to supervisory or regulatory requirements4

Your bank’s access to market financing

Your bank’s liquidity position

0

0

1

0

0

6

5

11

3

2

81

81

74

88

91

6

0

2

0

1

0

0

5

0

0

Contribution of your bank's perception of risk and risk tolerance to the NPL-related impact on your bank's lending policy 

Your bank's perception of risk5

Your bank's risk tolerance

0

0

14

8

83

89

2

1

0

0

7

14

7

9

7

1

1

1

5

5

3

1

12

8

3.0

3.0

3.0

3.0

3.0

2.9

2.9

0.39

0.23

0.69

0.19

0.17

0.40

0.31

149

149

149

149

149

149

149

The euro area bank lending survey - Second quarter of 2018

A28

From 2014 to 2017

A)  Impact of NPL ratio on your bank's credit standards

Loans and credit lines to enterprises

Loans to households for house purchase

Consumer credit and other lending to households

B)  Impact of NPL ratio on your bank's credit terms and conditions

Loans and credit lines to enterprises

Loans to households for house purchase

Consumer credit and other lending to households

8

3

2

6

3

2

18

15

20

14

11

15

63

74

67

67

79

74

6

4

5

8

4

5

3

2

2

3

2

2

2

2

3

1

2

2

17

12

15

9

7

9

2.8

2.9

2.8

2.9

2.9

2.9

0.84

0.65

0.68

0.79

0.62

0.64

139

134

140

139

134

140

C) Contribution of factors through which the NPL ratio affects your bank's policy on lending to enterprises and households (credit standards and credit terms and 
conditions)

Contribution of your bank's cost of funds and balance sheet constraints to the NPL-related impact on your bank's lending policy 

Costs related to your bank’s capital position

Costs related to your bank's balance sheet clean-up operations3

Pressure related to supervisory or regulatory requirements4

Your bank’s access to market financing

Your bank’s liquidity position

3

3

4

1

1

12

11

14

6

3

73

70

67

79

85

5

3

8

6

4

0

0

0

0

0

Contribution of your bank's perception of risk and risk tolerance to the NPL-related impact on your bank's lending policy 

Your bank's perception of risk5

Your bank's risk tolerance

5

6

23

18

64

69

5

5

1

0

7

14

7

9

7

2

2

11

11

9

1

-1

21

19

2.9

2.9

2.9

3.0

3.0

2.7

2.7

0.56

0.50

0.64

0.41

0.34

0.71

0.66

149

149

149

149

149

149

149

1) The NPL ratio is defined as the stock of gross non-performing loans on your bank's balance sheet as a percentage of the gross carrying amount of loans.
2) “NA” (not applicable) does not include banks which do not have any business in or exposure to the respective lending category (as regards credit standards), have not granted 
any new loans in the respective lending category during the period specified (as regards credit terms and conditions), or do not have any non-performing loans. 
3) This may include costs due to the need for additional provisions and/or write-offs exceeding the previous stock of provisions.
4) This may include expectations of or uncertainty about future supervisory or regulatory requirements.
5) Banks' perception of risk regarding the general economic situation and outlook, borrowers' creditworthiness and of the risk related to collateral demanded.
Notes: The number of banks responding (No of banks) refers to all participating banks which have business in or exposure to the respective lending category. Std. dev. denotes 
standard deviation.

The euro area bank lending survey - Second quarter of 2018

A29

© European Central Bank, 2018 

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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. 

ISSN 
EU catalogue No 

1830-5989 (online) 
QB-BA-18-003-EN-N (online)