European Central Bank publishes SAFE survey showing slight tightening in bank loan terms and loan applications down to 17%

The European Central Bank released the third quarter of 2025 results of its Survey on the Access to Finance of Enterprises (SAFE), pointing to a slight tightening in euro area firms’ financing conditions. Firms reported marginally higher interest rates and other costs on bank loans, while perceived needs for and availability of bank credit were broadly unchanged. On balance, a net 2% of firms reported higher bank loan interest rates, with large firms still seeing a net decline (-3%) but small and medium-sized enterprises reporting a net increase (5%). Other loan conditions tightened further, with a net 23% reporting higher charges, fees and commissions and a net 16% reporting stricter collateral requirements. Firms continued to cite the general economic outlook as the main constraint on external finance (net 19%), and reported a smaller net improvement in banks’ willingness to lend (2%, down from 6%). Bank loan applications fell to 17% (15% for SMEs and 22% for large firms), while financing obstacles remained low at 5%, including 3% discouraged borrowers. Beyond financing, turnover was broadly unchanged in net terms, profits continued to deteriorate (net 13%), investment increased (net 8%) and firms expected higher selling price growth over the next 12 months (2.9% on average), while median inflation expectations were unchanged at 2.5% for one year ahead and 3% for three and five years ahead. The 36th wave was conducted between 27 August and 3 October 2025 and covered 10,225 firms, of which 93% had fewer than 250 employees, using both three-month and six-month reference periods across sub-samples. The questionnaire also included reintroduced items for the six-month reference-period group and added ad hoc questions on export markets and late payments.