The Austrian National Bank has published the Austrian results of the euro area Bank Lending Survey for the first quarter of 2026. Austrian banks reported that demand for corporate loans increased again in the first quarter, supported by stronger investment activity, but expect demand to decline in the second quarter as uncertainty and the direct effects of the war in the Near and Middle East weigh on the outlook. By contrast, banks expect household demand for housing loans to continue rising, extending a trend that has lasted for two years and is mainly linked to lower interest rates. On the supply side, banks reported that the strained risk environment since 2022 has continued to weigh on corporate lending through tighter credit policies linked to the general economic situation and companies' creditworthiness. The war has led to targeted adjustments to lending guidelines, including avoiding financing linked to the war region and closer checks on companies' exposure to energy prices and supply chains, but banks did not report any broad additional tightening of corporate credit supply and said the effect is limited to a small share of firms. Banks also lowered margins again on corporate loans that are not above-average risk, citing stronger competition. Demand for housing loans has continued to recover from its historic low, and banks expect that trend to continue into the second quarter of 2026. New housing lending averaged EUR 1.4 billion per month in 2025, almost 50% above the 2024 average, after the European Central Bank lowered its policy rate from 4% to 2% between June 2024 and June 2025. Survey responses indicated no impact from the war on banks' lending business with households.
Austrian National Bank (OeNB) 2026-04-28
Austrian National Bank survey shows Austrian banks expect corporate loan demand to weaken in the second quarter while housing loan demand keeps rising
The Austrian National Bank published the Austrian results of the euro area Bank Lending Survey for Q1 2026, showing rising corporate loan demand but an expected decline in Q2 due to uncertainty and the war in the Near and Middle East. Banks reported continued tightening of corporate credit policies in response to a strained risk environment, with targeted adjustments related to the war but no broad additional tightening, and lower margins on standard corporate loans amid stronger competition. Housing loan demand has been recovering from historic lows, supported by lower interest rates, with banks expecting further growth and reporting no war-related impact on household lending.