The European Central Bank released its Bank Lending Survey, showing that eurozone banks tightened credit standards further in the second quarter of 2026 due to geopolitical and energy market concerns, and expect to continue tightening in the third quarter. Although business loan demand increased, banks rejected a higher proportion of loan applications, especially in the automotive industry and energy-intensive manufacturing sectors. The main factors were risks to the economic outlook and banks' reduced risk appetite. The survey of 159 large banks indicated that lending criteria will tighten across all loan categories, while demand for housing loans fell sharply and is expected to remain weak.