India, Jan. 28 -- The euro area banks tightened their credit standards for companies in the fourth quarter citing higher perceived risks and lower risk tolerance, the quarterly Bank Lending Survey from the European Central Bank showed on Tuesday.
Lenders renewed their internal guidelines and loan approval criteria for loans or credit lines to enterprises in the fourth quarter at the most pronounced level since the third quarter of 2023.
Banks in Germany and France operates in an environment of high political uncertainty and it weighed on their risk perceptions, whereas credit standards eased in Italy.
Firms expect a further net tightening of credit standards for loans to firms. The survey was conducted among 155 banks between December 10...