Banks in the eurozone eased their credit standards for business and home loans in the third quarter, amid more favorable funding conditions, according to the ECB.
The central bank's latest euro area bank lending survey also showed that credit standards on loans to businesses tightened a little in Germany and France, eased in Italy and the Netherlands and remained unchanged in Spain in the third quarter.
For housing loans, standards eased in Italy and the Netherlands, and remained unchanged in France, Germany and Spain.
Net demand for home loans increased in most large euro area countries, except for Spain where it significantly fell. In France and Germany, net demand for loans to businesses increased, but dropped in Spain and Italy and also fell slightly in the Netherlands.
For the fourth quarter, banks expect to keep credit standards unchanged for all loan categories, the survey results showed. Banks also foresee an increase in net demand for housing loans and consumer credit, while the demand for business loans is expected to remain the same.