Banks in the Eurozone tightened housing loan conditions in the third quarter

In the Bank Loan Survey report of the European Central Bank (ECB), it was stated that banks in the Eurozone tightened housing loan terms and are expected to tighten further in the last quarter.

The ECB has published a report on the results of the October 2021 Bank Credit Survey, which included 146 banks in the Eurozone.

In the report covering the third quarter of the year, it was stated that banks in the Euro Zone did not change the access of firms to credit in the July-September period, tightening mortgage conditions for households, and it is expected to continue to tighten in the last quarter.

In the report, which states that "net tightening in housing loans was related to banks' risk tolerance, fund costs and balance sheet restrictions", it was stated that banks expect no change in loan demand for households in the last quarter.

Meanwhile, the ECB Monetary Policy Committee meeting to be held on Thursday, October 28th is in the focus of investors. The ECB Board of Directors will also evaluate the economic situation at the meeting.

While the ECB is not expected to change interest rates this week, a decision on the future of bond buying programs is expected. Support under the ECB's Pandemic Emergency Asset Purchase Program (PEPP) is expected to end in March 2022.

ECB's Bank Credit Survey, which provides information about the credit conditions of banks in the Euro Zone, is conducted 4 times a year. The final survey was conducted on September 20-October 5th.