Survey shows tightening lending conditions for euro area firms in Q2 2026

The European Central Bank’s Survey on the Access to Finance of Enterprises (SAFE) for the second quarter of 2026 reports a significant net increase in interest rates on bank loans (net 42%), up from 26% in the previous quarter. Both small and large firms experienced similar increases.

Firms also reported a net 31% increase in other financing costs, such as charges, fees, and commissions, and a net 10% increase in collateral requirements, down from 14%.

There was a small rise in financing needs for bank loans (net 2%), while loan availability remained broadly unchanged (net -1%). Large firms reported increased availability (net 4%), whereas availability declined for SMEs (net -4%). The bank loan financing gap increased slightly to 3% from 2%.

Firms perceive the general economic outlook as the main constraint on external financing (net 29%) but note slight improvements in banks’ willingness to lend (net 6%). A net 10% expect their firm-specific outlook to negatively impact financing availability, up from 8%.

Expectations for selling prices, non-labour input costs, and wages over the next 12 months are moderate, with selling prices expected to rise by 3.2%, input costs by 5.2%, and wages by 2.5%. Inflation expectations remain stable at 3.0% for one and three years ahead, with a slight increase to 3.1% for five years ahead. The risk of upside inflation remains high at 65%.

Geopolitical tensions from the Middle East conflict have prompted firms to seek alternative suppliers (36% for inputs, 29% for energy), invest in energy efficiency (31%), increase inventories (21%), and revise insurance or trade finance arrangements (15%). Only 8% reduced or suspended activity in export markets. Larger firms are more active in adopting these strategies.

Regarding financing AI investments over the next year, firms plan to primarily use internal funds (72%), with external sources like bank loans, grants, or leasing each at around 16%. Equity and debt securities are less common (6% and 1%, respectively).

The survey was conducted between 21 May and 26 June 2026, covering 5,087 firms across the euro area, of which 92% have fewer than 250 employees. The report and detailed data are available on the ECB’s website and Data Portal.

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