Eurozone Banks Tighten Lending Criteria

Banks in Spain significantly tightened criteria for accessing credit during the first quarter of 2026. A study by the Bank of Spain confirmed these more complicated lending conditions. The findings were released in the quarterly bank lending survey. The report indicates that the start of 2026 has brought increased complications for credit access. The number of loans requested during the first three months of 2026 has decreased across all sectors. Interest rates and terms remain largely unchanged, though mortgage costs have increased slightly. The decline in loan volume is noted as a trend for the current year. Banks in the Eurozone are tightening lending requirements due to risks associated with the Iran-related conflict. The European Central Bank reports that rising energy prices are making financial institutions less willing to take risks.