Eurozone Banks Tighten Credit Standards in Q2, Expect Further Tightening in Q3

Eurozone banks tightened access to credit in the second quarter of 2026 due to geopolitical instability fears and anticipate further tightening in the current quarter, according to the European Central Bank's (ECB) quarterly Bank Lending Survey. Perceived risks to the economic outlook and banks' lower risk tolerance were the primary factors contributing to this tightening.