Credit standards in Germany, according to the latest survey results, stayed largely unchanged in the third quarter. On the whole, however, credit demand was observed to be less dynamic.

Only credit standards for loans to finance household consumption were slightly tightened. Economic developments did not generate any further expansionary stimuli to banks’ lending policy, unlike in earlier quarters. German banks adjusted their credit conditions considerably, with margins for loans to enterprises being expanded, in some cases significantly, following several quarters of tightening. On the other hand, margins on average-risk loans to households for house purchase were tightened perceptibly. This adjustment was attributed chiefly to growing competition in this market segment. Conditions for consumer loans remained largely unchanged.

In the euro area, developments were once again very uneven in the third quarter. On the whole, conditions for all three types of lending were tightened perceptibly, with overall demand declining.

The October survey again contained an ad hoc question on the impact of the financial crisis on wholesale funding. Both for the German banks taking part in the survey and the overall sample of European banks, access to wholesale funding on the money and capital markets deteriorated significantly, on balance, compared to the preceding quarter.

The aggregate survey results for Germany may be found at http://www.bundesbank.de/volkswirtschaft/vo_veroeffentlichungen.en.php.