October 27, 2020
Frankfurt am Main / Vienna (pte022 / 10/27/2020 / 13:30) – One fifth of banks in the euro zone introduced stricter criteria for loans to companies and households in the third quarter of 2020. This is shown by a survey by the European Central Bank (ECB) http://ecb.europa.eu. According to the financial institutions, loans have become significantly riskier during the Corona period. Even higher standards of creditworthiness can be expected in the fourth quarter.
Probability of failure higher
“The probability of loan defaults is significantly higher in uncertain times like the Corona crisis. Banks and insurance companies calculate the risks precisely and it is understandable that they are more cautious now. In fact, institutions are currently giving even more loans because many European governments are paying the costs cover for failures what the banks would normally have to do themselves, “explains Dieter Hein, managing director of fairesearch http://fairesearch.de, to pressetext.
143 banks took part in an ECB survey. European financial institutions are particularly tough on loans for house purchases by households. Here demand increased in the third quarter, mainly due to relatively low interest rates and greater confidence among consumers. Banks want to increase their claims in this area in the fourth quarter.
“Event beyond all expectations”
The demand for credit among companies has fallen. Compared to the second quarter of 2020, companies now need less emergency liquidity. According to the ECB, the eurozone banks would be able to grant loans due to various aid measures, but they are holding back due to the uncertain outlook for the future economic situation.
“This speaks of the general impossibility of making a serious statement about the economic development of the next six to twelve months. Basically, the banks have learned from the financial crisis of 2008 and the sector is very tightly regulated. The 2020 pandemic is in fact an event beyond all expectations, “says Gerhard Wagner, managing director of the credit protection association KSV1870 http://ksv.at, when asked by pressetext.
(The End)
Sender: pressetext.redaktion
Contact person: Georg Haas
Tel.: +43-1-81140-306
Email: [email protected]
Website: www.pressetext.com
[ Quelle: http://www.pressetext.com/news/20201027022 ]
The issuer is responsible for the content of the announcement
–
–
/data/photo/2020/10/27/5f980a75ef714.jpg?resize=150%2C150&ssl=1)
