Survey shows tightening of lending conditions for euro area firms in first quarter of 2026

The European Central Bank’s Survey on the Access to Finance of Enterprises (SAFE) for the first quarter of 2026 reports a net increase in bank loan interest rates (net 26%) compared to the previous quarter (12%). Both small and large firms experienced similar increases.

Firms also reported further increases in other financing costs (net 37%) and collateral requirements (net 14%), with no change from the previous quarter. Financing needs remained stable (net 0%), but availability of bank loans declined slightly (net -3%), leading to a marginally lower financing gap at 2%.

Looking ahead, firms expect a slight decrease in external financing availability over the next three months. The main constraint on external financing remains the general economic outlook (net 26%), though banks’ willingness to lend improved slightly (net 5%).

Firms’ turnover remained broadly unchanged over the last three months, with a net 29% expecting an increase in the next quarter. Profitability continued to decline (net 16%), while investment rose slightly (net 3%). Future investment optimism remains high (net 13%).

Expectations for selling prices and non-labour input costs increased significantly, with prices expected to rise by 3.5% and input costs by 5.8%. Wage expectations moderated slightly, increasing by 2.8%. Firms’ inflation expectations for one year ahead rose to 3.0%, while medium-term expectations remained stable at 3.0%, with increased upside risks, especially after the onset of the Middle East conflict.

The survey was conducted between 19 February and 1 April 2026, covering 10,544 firms across the euro area, with 92% having fewer than 250 employees. The report and detailed data are available on the ECB’s website and Data Portal.

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