Eurozone banks tighten access to corporate loans — ECB survey

The European Central Bank’s (ECB) survey showed that eurozone’s lenders curbed companies’ access to credit last quarter. In addition, the standards are expected to be tightened further due to increasing economic risks.

For most of last year, the region saw a moderate increase in lending on the back of the ECB's interest rate cuts. However, the growth prospects are currently seen limited due to the global turmoil caused by Donald Trump's ever-changing trade policies.

The ECB may lower rates again at its meeting on April 17 and 2–3 more times later this year. The decision is likely to be taken as US import duties curb trade, and uncertainty weighs on investment and consumption in Europe, Reuters says. 

The region also saw demand for corporate credit falling in January-March this year. Nevertheless, banks expect a small rebound this quarter despite higher risk estimates reported by lenders in France, Italy, and Germany.