ECB quarterly bank lending survey: in the three months to September, 159 euro-area banks tightened corporate lending standards and reported weaker loan demand. Survey period: Sept. 21–Oct. 6. The ECB said its rate hikes are helping cool economic activity; banks cited rising risk perceptions and lower risk tolerance as primary drivers of tighter standards. Several banks flagged heightened pressure from geopolitical uncertainty and energy-market shifts, and noted the US–Iran conflict increased ris

ECB quarterly bank lending survey: in the three months to September, 159 euro-area banks tightened corporate lending standards and reported weaker loan demand. Survey period: Sept. 21–Oct. 6. The ECB said its rate hikes are helping cool economic activity; banks cited rising risk perceptions and lower risk tolerance as primary drivers of tighter standards. Several banks flagged heightened pressure from geopolitical uncertainty and energy-market shifts, and noted the US–Iran conflict increased risk concerns. The share of rejected loan applications rose. Loan demand fell unexpectedly versus banks’ prior expectations, reflecting higher borrowing costs and the overall level of interest rates. The ECB raised key rates by a cumulative 50bps in June and September. Officials are expected to hold rates on Thursday and to raise by 25bps in December.