Key facts
- Lending to euro zone firms grew 4.2% in September.
- Household lending grew 3.1% in September.
- Euro area banks tightened credit standards for firms in Q3 2026.
- Loan demand for firms decreased in Q3 2026.
Lending to euro zone firms continued to grow at a healthy pace in September, with the growth rate holding steady at 4.2%. Household lending also remained unchanged at 3.1%, matching its best rate in over three years. The M3 measure of money circulating in the euro zone, an indicator of future activity, held steady at 3.5%, exceeding analyst expectations. However, a separate survey for the third quarter of 2026 indicated that euro area banks further tightened credit standards for firms, with a net 9% reporting stricter criteria. This tightening was slightly higher than in the previous quarter and was driven by heightened risk perceptions and lower risk tolerance, partly due to geopolitical uncertainty and energy developments. Banks also reported a net decrease in loan demand from firms, with a net -6% seeing reduced demand, primarily due to the general level of interest rates.