The Austrian National Bank published Austria’s results from the euro area Bank Lending Survey for the second quarter of 2026, showing little change in corporate credit conditions and demand, alongside another increase in household demand for housing loans. Banks reported that the expected deterioration linked to the war in the Middle East did not materialize in corporate lending, although the conflict has added to companies’ existing need to adjust to current economic pressures, including climate-related challenges. Corporate loan demand was broadly unchanged in the second quarter and banks did not expect material demand shifts in the third quarter. Within that stable picture, large companies showed higher financing needs for restructuring, demand rose in the residential real estate sector and fell in motor vehicle manufacturing including suppliers. Banks’ lending policies toward companies remained largely unchanged but still tight after years of tightening driven mainly by a weaker risk assessment. The survey found no significant effect from the European Central Bank’s June 2026 rate decision on financing conditions. For households, demand for housing loans continued the upward trend seen since early 2024, supported by a better housing market outlook and stronger borrower optimism, while interest rates played a smaller role than in earlier quarters. New housing loan volumes in banking statistics rose from EUR 0.7 billion per month in January 2024 to more than EUR 1.6 billion in each of March, April and May 2026, with banks expecting solid new lending to continue even as they saw no further demand increase in the third quarter. The survey’s annual climate section showed that companies’ financing needs for climate-related investment and restructuring have increased steadily since mid-2022 and are expected to keep rising over the next 12 months. On the supply side, banks reported progressive tightening for high-CO2-emitting companies since mid-2022 and signaled further tightening over the next year, citing both transition costs and physical climate risks that could affect the value of corporate assets.
Austrian National Bank (OeNB)2026-07-21
Austrian National Bank reports stable corporate lending conditions and higher housing loan demand in second quarter 2026
The Austrian National Bank’s latest Bank Lending Survey for Austria showed corporate credit demand and banks’ lending policies were broadly unchanged in the second quarter of 2026, with the impact of the war in the Middle East smaller than previously expected. Household demand for housing loans rose again, while climate-related restructuring needs continued to lift corporate financing demand. Banks also signaled further tightening for high-CO2-emitting firms over the next 12 months.