The Euro Area Bank Lending Survey Fourth Quarter of 2025

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Search in this publication 1Overview of resultsBox 1 General notes Box 1 General notes 2Loans to enterprises2.1Net tightening of credit standards2.2Terms and conditions tightened2.3Rejection rates increased further2.4Demand for loans increased slightly 2.1Net tightening of credit standards 2.2Terms and conditions tightened 2.3Rejection rates increased further 2.4Demand for loans increased slightly 3Loans to households for house purchase3.1Small easing of credit standards3.2Moderate net easing of terms and conditions3.3Rejection rates for housing loans remained unchanged3.4Moderate increase in loan demand 3.1Small easing of credit standards 3.2Moderate net easing of terms and conditions 3.3Rejection rates for housing loans remained unchanged 3.4Moderate increase in loan demand 4Consumer credit and other lending to households4.1Moderate tightening of credit standards4.2Terms and conditions tightened somewhat4.3Rejection rates increased again4.4Demand for consumer credit decreased slightly 4.1Moderate tightening of credit standards 4.2Terms and conditions tightened somewhat 4.3Rejection rates increased again 4.4Demand for consumer credit decreased slightly 5Ad hoc questions5.1Banks’ access to funding deteriorated slightly for retail funding and money markets and improved for debt securities and securitisations5.2Banks increased their capital and liquidity while reducing their risk-weighted assets and tightening their credit standards in response to regulatory and supervisory actions5.3Risks to credit quality had a small additional net tightening impact on credit standards5.4Net tightening of credit standards in several economic sectors5.5Changes in trade policies and the related uncertainty led to tighter credit standards and lower demand for loans to firms 5.1Banks’ access to funding deteriorated slightly for retail funding and money markets and improved for debt securities and securitisations 5.2Banks increased their capital and liquidity while reducing their risk-weighted assets and tightening their credit standards in response to regulatory and supervisory actions 5.3Risks to credit quality had a small additional net tightening impact on credit standards 5.4Net tightening of credit standards in several economic sectors 5.5Changes in trade policies and the related uncertainty led to tighter credit standards and lower demand for loans to firms Annexes

In the bank lending survey (BLS) on the fourth quarter of 2025, euro area banks reported an unexpected net tightening of credit standards for loans or credit lines to firms (net percentage of banks of 7%; see Overview table).[1] Perceived risks to the economic outlook as well as the lower risk tolerance displayed by banks drove this development, signalling a high degree of risk aversion on the part of banks. Across the largest euro area countries, banks in Germany and France reported tighter credit standards for firms, partly but not exclusively related to firms affected by changes in trade policies, while credit standards remained unchanged in Spain and Italy. For the first quarter of 2026, banks expect a further net tightening of credit standards for loans to firms (6%). Banks reported a small net easing of credit standards for housing loans, whereas credit standards for consumer credit tightened further (net percentages of -2% and 6% respectively). For housing loans, competition had an easing impact on credit standards while risk perceptions had a tightening impact. Banks’ lower risk tolerance and higher risk perceptions were the main drivers of the tightening for consumer credit. Across the largest euro area countries, credit standards for housing loans remained unchanged in Spain and Italy, tightened in Germany and eased in France. The easing of credit standards for housing loans was unexpected, whereas banks had expected a tightening for consumer credit. For the first quarter of 2026, banks expect credit standards to tighten for housing loans (3%) and, more markedly, for consumer credit (9%). Firms’ demand for loans continued to increase slightly, in net terms, in the fourth quarter of 2025, with heterogeneity across countries, banks and firm sizes (net percentage of 3%). The net increase in loan demand was similar to that for the third quarter (2%). It was mainly driven by an increase in demand for inventories and working capital, debt refinancing/restructuring and mergers and acquisitions (within “other financing needs”), whereas fixed investment made an overall neutral net contribution to loan demand. The general level of interest rates continued to provide slight support to the increase in loan demand, although less than in previous quarters, with the supportive impact concentrated in Italy. Across the largest euro area countries, demand for loans to firms increased in Germany and Italy and decreased in Spain and France. The increase in loan demand was unexpected. For the first quarter of 2026, banks expect a further net increase in loan demand (6%). Banks reported an additional, albeit more moderate, net increase in demand for housing loans, whereas demand for consumer credit decreased slightly (net percentages of 9% and -2% respectively). Improved housing market prospects were the main driver of the increase in demand for housing loans, while consumer confidence contributed negatively. Developments in interest rates contributed only very slightly to the net increase in demand and were offset by a negative contribution from other financing needs. The net increase in demand was lower than in the previous quarter (28%) but broadly in line with banks’ expectations (8%). Consumer credit demand declined as consumer confidence weakened, despite the positive contribution from the general level of interest rates. The decrease in demand for consumer credit contrasts with previous expectations of a minor increase (2%). For the first quarter of 2026, banks expect a small increase in demand for both housing loans (3%) and consumer credit (2%). Overall credit terms and conditions tightened for loans to firms and consumer credit, while they eased for housing loans. For firms, it was the first net tightening since the fourth quarter of 2023, driven by lending rates, collateral requirements and other terms and conditions, while margins on average loans continued to narrow. For housing loans, developments in lending rates provided a

The BLS is addressed to senior loan officers at a representative sample of euro area banks, representing all euro area countries and reflecting the characteristics of their respective national banking structures. The main purpose of the BLS is to enhance the Eurosystem’s knowledge of bank lending conditions in the euro area.[2] Detailed tables and charts based on the responses provided can be found in Annex 1 for the standard questions and Annex 2 for the ad hoc questions. In addition, BLS time series data are available on the ECB’s website through the ECB Data Portal – see also the notes to charts throughout this report. Detailed explanations on the BLS questionnaire, the aggregation of banks’ replies to national and euro area BLS results, the BLS indicators and information on the BLS series keys are available on the ECB’s website in the BLS user guide. A copy of the BLS questionnaire with the standard questions and a glossary of BLS terms can also be found on the ECB BLS webpage.

Euro area banks reported an unexpected net tightening of credit standards for loans or credit lines to firms in the fourth quarter of 2025 (net percentage of banks of 7%; see Chart 1 and Overview table).[3] This followed the lower net tightening of credit standards for loans to firms in the third quarter of 2025 (4%), surpassing the expectations reported by banks in that quarter (1%). The cumulated net tightening was 19% since the third quarter of 2024 (i.e. since the start of the latest monetary policy easing cycle).[4] Across the largest euro area countries, banks in Germany and France reported tighter credit standards for loans to firms, while credit standards remained unchanged in Spain and Italy. The net tightening for euro area firms was around the historical average since 2003 (8%) but above the historical average since 2014 (3%).[5] It was higher for loans to large firms than for loans to SMEs (net percentages of 6% and 2% respectively; see Chart 2). Across maturities, banks reported a net tightening of credit standards for both short-term and long-term loans (net percentage of 7% for both). Concerns about the outlook for firms and the broader economy, as well as banks’ lower risk tolerance, led to tighter credit standards (see Chart 1 and Table 1). The net tightening signalled a high degree of risk aversion and a prudent approach to lending by banks. As part of their perceived risks, banks referred to a tightening impact of both the industry-specific and the firm-specific situation (10%) and the general economic outlook (7%). This is also consistent with the net tightening impact of banks’ NPL ratios and other indicators of asset quality on credit standards via perceived risks for banks (see Section 5.3). In addition, higher perceived risks and the lower risk tolerance reported by banks are influenced in part by the impact of changes in trade policies and related uncertainty (see Section 5.5). Banks’ balance sheet situations and competition had a broadly neutral impact on credit standards in the fourth quarter of 2025. Across the largest euro area countries, banks in Germany and France reported higher perceived risks and a lower risk tolerance as the main drivers of the net tightening. Banks in Spain and Italy mentioned no notable impact from any particular factor. Changes in credit standards applied to the approval of loans or credit lines to enterprises, and contributing factors (net percentages of banks reporting a tightening of credit standards, and contributing factors) Notes: “Credit standards - actual” are changes that have occurred, while “Credit standards - expected” are changes anticipated by banks. Net percentages are defined as the difference between the sum of the percentages of banks responding “tightened considerably” and “tightened somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased considerably”. “Cost of funds and balance sheet constraints” is the simple average of “banks’ capital and the costs related to banks’ capital position”, “access to market financing” and “liquidity position”; “Risk perceptions” is the simple average of “general economic situation and outlook”, “industry or firm-specific situation and outlook/borrower’s creditworthiness” and “risk related to the collateral demanded”. “Competition” is the simple average of “competition from other banks”, “competition from non-banks” and “competition from market financing”. The net percentages for “Other factors” refer to an average of the further factors which were mentioned by banks as having contributed to changes in credit standards. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries. Changes in credit standards applied to the approval of loans or credit lines to SMEs and large enterprises, and contributing factors (net percentages of banks reporting a tightening of credit standards, and contributing factors

Overall terms and conditions for new loans to enterprises tightened for the first time since the fourth quarter of 2023 (net percentage of 4%; see Chart 3 and Table 2).[6] Banks referred to a net tightening impact from lending rates, consistent with the uptick in euro area risk-free rates towards the end of 2025, as well as stricter collateral requirements and other terms and conditions, such as loan size, maturity and loan covenants, in the fourth quarter of 2025. Margins on average loans continued to have a small easing impact for loans to firms, while margins on riskier loans had a broadly neutral impact on terms and conditions. Across the four largest euro area countries, banks in Germany, Spain and France reported a net tightening of overall terms and conditions, driven by lending rates (in Germany and Spain), loan margins (in Germany), and collateral requirements and other terms and conditions (in France). Banks in Italy indicated a net easing of overall terms and conditions related to lower lending rates. Across firm sizes, euro area banks reported a net tightening of overall terms and conditions for loans both to SMEs and to large firms (5% and 3% respectively; see Chart 4). The tightening impact of lending rates was concentrated on loans to SMEs. This might indicate, together with wider margins on riskier loans to SMEs, that banks have added an additional charge for higher credit risk. For loans to SMEs, the tightening was also due to stricter collateral requirements and other terms and conditions. For loans to large firms, banks referred to broadly unchanged lending rates, and a tightening impact via stricter collateral requirements and other terms and conditions, whereas margins on average loans continued to narrow and margins on riskier loans remained unchanged. Changes in terms and conditions on loans or credit lines to enterprises (net percentages of banks reporting a tightening of terms and conditions) Notes: “Overall terms and conditions” are the actual terms and conditions agreed in the loan contract. “Lending rates” was introduced in April 2024. “Margins” are defined as the spread over relevant market reference rates. “Other terms and conditions” is the simple average of “non-interest rate charges”, “size of the loan or credit line”, “loan covenants” and “maturity”. The net percentages for “Other components” refer to an average of the further terms and conditions components which were mentioned by banks as having contributed to changes in overall terms and conditions. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries. Changes in terms and conditions on loans or credit lines to enterprises (net percentages of banks) Country Overall terms and conditions Banks’ lending rates Banks’ margins on average loans Banks’ margins on riskier loans Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Euro area 1 4 -1 4 -4 -2 0 1 Germany 6 6 3 16 6 6 6 13 Spain -8 8 -8 8 -8 0 0 0 France 0 10 0 0 -9 -10 -9 -10 Italy 0 -9 0 -9 0 0 -9 0 Note: See the notes to Chart 3. Higher risk perceptions and lower risk tolerance were the primary drivers behind the overall tightening of terms and conditions for euro area firms (see Table 3). Competition had a small easing effect, mainly among banks in France. Changes in terms and conditions on loans or credit lines to SMEs and large enterprises (net percentages of banks reporting a tightening of terms and conditions) Notes: See the notes to Chart 3. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: loans to SMEs and loans to large enterprises. Factors contributing to changes in overall terms and conditions for loans or credit lines to enterprises (net percentages of banks) Country Cost of funds and balance sheet constraints Pressure from competition Perception of risk Banks’ risk tolerance Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4

Banks reported a further net increase in the share of rejected loan applications for firms (net percentage of 6%, see Chart 5). The net increase was similar to the previous quarter (5%), and higher for large firms than for SMEs (6% and 2% respectively). This follows previous quarters in which the net increase in the share of loan rejections was higher for loans to SMEs than for large firms. The higher net increase in the share of loan rejections for large firms is consistent with the stronger net tightening of credit standards for loans to large firms than for loans to SMEs in the fourth quarter. Banks in Germany and France reported a net increase in the share of rejected corporate loan applications in the fourth quarter of 2025. For Germany, the net increase was similar for loans to SMEs and large firms, whereas in France banks reported a net increase in the share of rejected loan applications for large firms but not for SMEs. Banks in Spain and Italy indicated unchanged rejection rates for loans to firms. Changes in the share of rejected loan applications for enterprises (net percentages of banks reporting an increase) Notes: Share of rejected loan applications relative to the volume of all loan applications in that loan category. The breakdown by firm size was introduced in the first quarter of 2022. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries.

Firms’ demand for loans continued to increase slightly, in net terms, in the fourth quarter of 2025, with heterogeneity across countries, banks and firm sizes (net percentage of 3%; see Chart 6).[7] The net increase in loan demand was similar to the third quarter (2%) and exceeded the expectations reported by banks in that quarter (0%). Additionally, responses across banks showed some variation, with some banks noting an increase in loan demand while others observed a decrease. Across the largest euro area countries, banks reported a net increase in demand for loans to firms in Germany and Italy, whereas they reported a net decrease in Spain and France. Across firm sizes, demand for loans increased moderately for large firms but decreased slightly for SMEs (7% and -2% respectively, see Chart 7). SMEs may have been more hesitant to seek loans due to less favourable financing conditions compared with larger firms (see Section 2.2). Loan demand increased moderately for long-term loans and only slightly for short-term loans (8% and 2% respectively), although in both cases more than in the previous quarter. Changes in demand for loans or credit lines to enterprises, and contributing factors (net percentages of banks reporting an increase in demand, and contributing factors) Notes: “Demand - actual” represents changes that have occurred, while “Demand - expected” represents changes anticipated by banks. Net percentages for the questions on demand for loans are defined as the difference between the sum of the percentages of banks responding “increased considerably” and “increased somewhat” and the sum of the percentages of banks responding “decreased somewhat” and “decreased considerably”. “Other financing needs” is the simple average of “mergers/acquisitions and corporate restructuring” and “debt refinancing/restructuring and renegotiation”. “Use of alternative finance” is the simple average of “internal financing”, “loans from other banks”, “loans from non-banks”, “issuance/redemption of debt securities” and “issuance/redemption of equity”. The net percentages for “Other factors” refer to an average of the further factors which were mentioned by banks as having contributed to changes in loan demand. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries. Changes in demand for loans or credit lines to SMEs and large enterprises, and contributing factors (net percentages of banks reporting an increase in demand, and contributing factors) Notes: See the notes to Chart 6. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: loans to SMEs and loans to large enterprises. Firms’ loan demand was primarily driven by an increase in demand for inventories and working capital and other financing needs, whereas fixed investment continued to make an overall neutral net contribution (see Chart 6 and Table 4). The increase in demand for inventories and working capital was the highest since the fourth quarter of 2022 and was concentrated in Germany and Italy. Additionally, debt refinancing/restructuring and mergers and acquisitions (within “other financing needs”) contributed positively to loan demand (mostly in the case of banks in France and Italy), while firms’ internal funds had a small dampening impact. The level of interest rates provided slight support to the increase in loan demand, although less than in previous quarters, with the supportive impact concentrated in Italy. This corresponds to the broad stabilisation of firms’ cost of bank borrowing, according to bank interest rate statistics, following declines observed until August 2025. Fixed investment continued to make an overall neutral net contribution to loan demand, dampened by the overall economic situation, while positive effects from infrastructure and defence spending were not yet visible. Across firm sizes, only large firms reported a net

Banks reported a small net easing of credit standards for housing loans in the fourth quarter of 2025 (net percentage of banks of -2%, see Chart 8 and Overview table).[8] The small easing of credit standards for housing loans was unexpected, as banks had anticipated a slight net tightening (2%). Among the four largest euro area countries, credit standards tightened in Germany, eased in France, and remained unchanged in Spain and Italy. Changes in credit standards applied to the approval of loans to households for house purchase, and contributing factors (net percentages of banks reporting a tightening of credit standards, and contributing factors) Notes: “Credit standards - actual” are changes that have occurred, while “Credit standards - expected” are changes anticipated by banks. Net percentages are defined as the difference between the sum of the percentages of banks responding “tightened considerably” and “tightened somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased considerably”. “Cost of funds and balance sheet constraints” is the simple average of “banks’ capital and the costs related to banks’ capital positions”, “access to market financing” and “liquidity position” (the aggregate series was discontinued from the first quarter of 2022, when detailed sub-factors were introduced). “Risk perceptions” is the simple average of “general economic situation and outlook”, “housing market prospects, including expected house price developments” and “borrower’s creditworthiness”. “Competition” is the simple average of “competition from other banks” and “competition from non-banks”. The net percentages for “Other factors” refer to an average of the further factors which were mentioned by banks as having contributed to changes in credit standards. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries. Competition had an easing impact on credit standards, while risk perceptions had a tightening impact (see Chart 8 and Table 5). Risk perceptions were one of the main factors behind the tightening of credit standards in Germany, reflecting banks’ views on the general economic situation and borrowers’ creditworthiness. Banks in Germany also reported a decline in risk tolerance as a major tightening factor. By contrast, banks in France indicated an increase in risk tolerance, coupled with an easing effect from competitive pressures from other banks. In the first quarter of 2026, euro area banks expect to slightly tighten credit standards on housing loans (net percentage of 3%). Across the four largest euro area economies, the expected tightening is driven by banks in Germany and Spain, while banks in France anticipate a net easing, and banks in Italy expect unchanged credit standards. Factors contributing to changes in credit standards for loans to households for house purchase (net percentages of banks) Country Cost of funds and balance sheet constraints Pressure from competition Perception of risk Banks’ risk tolerance Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Euro area 0 0 -2 -3 0 3 0 -1 Germany 0 0 0 0 2 5 0 7 Spain 0 0 0 0 0 0 0 0 France 0 0 0 -7 0 0 0 -14 Italy 0 0 0 0 0 0 0 0 Note: See the notes to Chart 8.

Euro area banks reported a moderate net easing of overall credit terms and conditions for housing loans in the fourth quarter of 2025 (net percentage of -4%; see Chart 9 and Table 6). This followed a similar easing of terms and conditions reported in the third quarter.[9] Narrower margins on average loans contributed to this easing, while developments in lending rates made a strong contribution to tightening for the first time since the start of data collection for this factor in the first quarter of 2024. This is consistent with the steepening of the euro area risk-free yield curve over the last quarter, which has translated into upward pressures on mortgage rates. Among the largest euro area countries, banks in Germany reported a net easing of terms and conditions, driven by narrower margins on both average and riskier loans. Banks in France also reported a net easing, with narrower margins on average loans, although lending rates had a tightening impact. In Italy, terms and conditions remained unchanged despite an easing impact from margins on average loans. In Spain, terms and conditions tightened owing to higher margins on average loans and higher lending rates. Changes in terms and conditions on loans to households for house purchase (net percentages of banks reporting a tightening of terms and conditions) Notes: “Overall terms and conditions” are the actual terms and conditions agreed in the loan contract. “Lending rates” was introduced in April 2024. “Margins” are defined as the spread over relevant market reference rates. “Other terms and conditions” is the simple average of “loan-to-value ratio”, “other loan size limits”, “non-interest rate charges” and “maturity”. The net percentages for “Other components” refer to an average of the further terms and conditions components which were mentioned by banks as having contributed to changes in overall terms and conditions. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries. Changes in terms and conditions on loans to households for house purchase (net percentages of banks) Country Overall terms and conditions Banks’ lending rates Banks’ margins on average loans Banks’ margins on riskier loans Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Euro area -5 -4 -2 14 -2 -7 6 0 Germany 15 -4 7 0 7 -7 11 -4 Spain -20 10 -10 10 -10 10 0 0 France -13 -14 -13 43 -13 -14 0 0 Italy -18 0 -9 0 -9 -9 0 0 Note: See the notes to Chart 9. In the fourth quarter of 2025, competition had a net easing impact on terms and conditions, while risk perceptions had a net tightening effect and other factors had a broadly neutral impact (see Table 7). The net easing impact of competition was stronger than in the previous quarter and was reported by banks in Germany, France and Italy, whereas in Spain competition had a neutral impact. Banks’ costs of funds and balance sheet constraints, mainly related to capital costs, had a net tightening impact in France, while they had a neutral effect on terms and conditions in the other large euro area economies. Banks’ risk perceptions had a tightening impact in Germany and Spain, while banks’ risk tolerance had a tightening impact only in Germany. Factors contributing to changes in overall terms and conditions on loans to households for house purchase (net percentages of banks) Country Cost of funds andbalance sheetconstraints Pressure fromcompetition Perception of risk Banks’ risk tolerance Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Euro area 1 1 -3 -7 -1 2 1 1 Germany 2 0 7 -7 0 4 4 4 Spain 0 0 -20 0 0 10 0 0 France 0 5 0 -14 0 0 0 0 Italy 3 0 -9 -9 9 0 0 0 Notes: The net percentages for these questions relating to contributing factors are defined as the difference between the percentage of banks reporting that the given factor contributed to a tightening and the percentage of banks reporting that it contributed to an easing. “C

The share of rejected housing loan applications remained unchanged in the fourth quarter of 2025 (net percentage of 0%; see Chart 10). This result follows the increasing share recorded in the preceding quarter. Across the four largest euro area countries, the share of rejections increased in Spain, decreased in Italy, and remained unchanged in Germany and France. Changes in the share of rejected loan applications for households (net percentages of banks reporting an increase) Notes: Share of rejected loan applications relative to the volume of all loan applications in that loan category. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries.

Banks reported an additional, albeit more moderate, net increase in demand for housing loans in the fourth quarter of 2025 (net percentage of 9%, see Chart 11 and Overview table).[10] The net increase was lower than in the previous quarter (28%) and broadly in line with banks’ expectations (8%). A net increase in demand was reported in the four largest euro area economies. This seventh consecutive quarter of net increases in housing loan demand is consistent with the gradual rise in volumes of loans to households for house purchase. Changes in demand for loans to households for house purchase, and contributing factors (net percentages of banks reporting an increase in demand, and contributing factors) Notes: “Demand - actual” represents changes that have occurred, while “Demand - expected” represents changes anticipated by banks. Net percentages for the questions on demand for loans are defined as the difference between the sum of the percentages of banks responding “increased considerably” and “increased somewhat” and the sum of the percentages of banks responding “decreased somewhat” and “decreased considerably”. “Other financing needs” is the simple average of “debt refinancing/restructuring and renegotiation” and “regulatory and fiscal regime of housing markets”. “Use of alternative finance” is the simple average of “internal finance of house purchase out of savings/down payment”, “loans from other banks” and “other sources of external finance”. The net percentages for “Other factors” refer to an average of the further factors which were mentioned by banks as having contributed to changes in loan demand. The full set of data underlying this chart can be downloaded via the following ECB Data Portal links: euro area and four largest euro area countries. Improved housing market prospects were the main driver of the increase in housing loan demand, while consumer confidence contributed negatively (see Chart 11 and Table 8). Developments in interest rates contributed only very slightly to the net increase in demand. Banks reported a markedly lower positive impact of interest rates than the figure for the previous quarter and the average since the first quarter of 2024, but this was offset by a negative contribution from other financing needs. Housing market prospects had a positive impact on demand across the largest euro area economies. Consumer confidence supported demand in Italy and Spain, while it had a dampening effect in Germany and France. Demand in Spain and Italy was also supported by the general level of interest rates, whereas this factor was neutral in Germany and France. Banks in the latter two countries reported a net negative impact of other financing needs on demand. The impact of other financing needs was neutral in Spain and Italy. Finally, the use of alternative finance, related to internal finance from savings and to loans from other banks, contributed to the increase in housing loan demand in Italy, while it had no impact in the other large countries. In the first quarter of 2026, banks expect housing loan demand to grow further, albeit only slightly (net percentage of 3%). Banks in Germany and Italy expect a net increase in loan demand, banks in Spain anticipate no change, while banks in France foresee a decline. Factors contributing to changes in demand for loans to households for house purchase (net percentages of banks) Country Housing market prospects Consumer confidence Other financing needs General level of interest rates Use of alternative finance Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 Euro area 25 16 3 -6 2 -2 21 2 -1 1 Germany 19 15 -4 -4 0 -2 15 0 0 0 Spain 40 10 30 20 0 0 40 20 0 0 France 38 29 0 -29 0 -7 38 0 0 0 Italy 0 9 0 18 0 0 9 18 -3 6 Note: See the notes to Chart 11.