ECB SAFE: euro area firms report further net tightening of bank loan rates in Q3 2026

• Net 46% of euro area firms reported higher interest rates on bank loans in Q3 2026, up from 42% in the previous quarter
• Large firms reported rate increases more often (net 55%, up from 41%) than SMEs (net 38%, down from 43%)
• Net 27% reported increases in other financing costs, down from 31%; collateral requirements rose to net 14% from 10%
• Bank loan availability fell a net 5% versus a net 1% decline in Q2 2026, while loan needs fell a net 2%
• More firms expect the availability of external financing to decrease over the next three months
• The ECB said a substantially changed sample, with first-time respondents in the majority, makes numerical responses challenging to interpret at this stage

Euro area firms widely reported a further net tightening of bank loan interest rates and other loan conditions related to price and non-price factors in the third quarter of 2026, the ECB said on 26 October 2026.

ECB SAFE: euro area firms report further net tightening of bank loan rates in Q3 2026

In the 40th round of the Survey on the Access to Finance of Enterprises (SAFE), a net 46% of firms reported an increase in interest rates on bank loans, compared with 42% in the previous quarter. Large firms reported increases more often (net 55%, up from 41%) than small and medium-sized enterprises (net 38%, down from 43%).

A net 27% of firms reported increases in other financing costs, down from 31% in the previous quarter. Collateral requirements rose to a net 14%, up from 10%.

Financing gap widens

Firms reported that the availability of bank loans declined by more than their needs. Availability fell a net 5% in Q3 2026, compared with a net 1% decline in Q2 2026, with SMEs at net -5% (from -4%) and large firms at net -6% (down from 4%).

A net 2% of firms reported a decrease in bank loan needs, while a net 2% reported an increase in the previous quarter. SMEs reported broadly unchanged needs (net 1%, compared with 2%), while large firms reported a decrease (net -6%, down from 3%).

The bank loan financing gap indicator, which captures the difference between changes in the need for and the availability of bank loans, was positive at a net 2%, compared with 3% in the previous quarter. Looking ahead, more firms expect the availability of external financing to decrease over the next three months.

Outlook constraints and expectations

Firms continued to perceive the general economic outlook as the main factor constraining the availability of external financing (net 31%, compared with 29% in the previous round), with large firms more pessimistic (net 35%) than SMEs (net 29%). A net 9% of firms said their firm-specific outlook had a negative impact, after 10% in the previous round, while the impact of their capital position and creditworthiness remained positive.

The ECB said the substantial change in sample composition, with first-time respondents accounting for the majority of the sample, makes it challenging to interpret responses to numerical questions at this stage. The increase in selling price expectations was contained among firms that took part in both rounds, whereas selling price expectations rose significantly in the full sample. Likewise, median inflation expectations remained broadly unchanged among firms in both rounds but rose significantly in the full sample. The risk assessment for firms' five-year-ahead inflation outlook was broadly unchanged.

The survey was conducted between 26 August and 2 October 2026. About half of the firms were asked about changes between July and September 2026; the remainder about changes between April and September 2026. The sample comprised 12,822 euro area enterprises, of which 11,917 (93%) had fewer than 250 employees.