Euro-Zone Banks Tighten Firms’ Credit Standards Most Since 2023

Euro-zone banks tightened corporate credit standards by the most in more than two years at the start of 2026. The tightening reflected an already prevailing risk-off trend that was worsened by geopolitical events, including the Iran war. The development points to tougher financing conditions for corporates across the region and could weigh on credit growth.

Analysis

Euro-zone banks tightened corporate credit standards by the most in more than two years at the start of 2026. The tightening reflected an already prevailing risk-off trend that was worsened by geopolitical events, including the Iran war. The development points to tougher financing conditions for corporates across the region and could weigh on credit growth.