In the fourth quarter of 2025, euro area firms reported a net 12% increase in bank loan interest rates, with both SMEs and large firms experiencing similar trends. Other loan conditions also tightened, as 28% of firms noted higher financing costs and collateral requirements. Financing needs rose modestly (net 3%), while perceived availability declined slightly (net -2%), widening the bank loan financing gap to net 3%. Inflation expectations remained broadly unchanged across horizons, with 56% of firms citing upside risks to long-term inflation. AI adoption was widespread, though most firms used it infrequently or moderately. The survey, covering 5,067 firms, highlighted challenges in accessing external financing and mixed outlooks for future investment and profits.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260202~71c8405376.en.html
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