The European Central Bank has published a new Broad Intermediation Gauge, or ECB-BIG index, to provide a timely assessment of euro area credit conditions across bank and non-bank financing. The index currently indicates that intermediation conditions are tighter than before the start of the war in the Middle East, with the recent tightening driven mainly by price components, particularly lending rates. The index combines data on lending rates, credit volumes, bank credit standards, corporate securities issuance and financial market conditions, while accounting for their links with macroeconomic activity. It is designed to clarify conditions when individual indicators diverge and to inform assessments of monetary policy transmission. ECB modelling finds that a one standard deviation tightening shock to the index reduces real GDP by 0.6% after about four quarters and lowers the Harmonised Index of Consumer Prices level by around 0.3% after eight quarters.
European Central Bank2026-08-06
European Central Bank introduces broad intermediation gauge showing renewed tightening in euro area credit conditions
The European Central Bank has introduced the ECB-BIG index to track euro area credit conditions across banks and non-banks. It currently shows renewed tightening, driven mainly by lending rates. ECB modelling links a one standard deviation tightening shock to a 0.6% decline in real GDP after about four quarters.