The European Central Bank published the results of the 37th round of the Survey on the Access to Finance of Enterprises in the euro area, covering firms’ financing and economic developments in October to December 2025. Firms reported a further tightening in bank lending conditions, led by higher borrowing costs, with the ECB’s composite indicator pointing to a slight tightening in overall financing conditions for both small and medium-sized enterprises and large firms. In net terms, 12% of firms reported higher interest rates on bank loans, up from 2% in the previous wave, alongside higher other financing costs such as fees and commissions. Reported needs for bank loans rose slightly while perceived availability declined, widening the euro area bank loan financing gap indicator to 3% from 1%, and firms expected the availability of external financing to remain broadly unchanged over the next three months. Bank loan applications increased to 23% from 17%, while the share of firms reporting obstacles to obtaining a bank loan rose to 7% from 5%, mainly driven by “discouraged borrowers”. The survey also found turnover improving but profits still deteriorating, with elevated cost pressures, and included a new module on artificial intelligence showing 27% of firms not using AI, 7% using it significantly, and planned AI investment averaging 9% of total investment over the next twelve months.
European Central Bank 2026-02-02
European Central Bank SAFE survey shows net 12% rise in bank loan interest rates and financing gap widening to 3% for euro area firms
The European Central Bank's latest Survey on the Access to Finance of Enterprises in the euro area indicates further tightening in bank lending conditions due to higher borrowing costs, with more firms reporting increased interest rates and financing costs. The survey also highlights a widening bank loan financing gap, increased loan applications, and a new module on artificial intelligence revealing limited current use but planned investment growth.