In the third quarter of 2026, euro area enterprises reported a further net tightening of bank loan interest rates and other lending conditions. According to the European Central Bank's Survey on the Access to Finance of Enterprises (SAFE), a net 46% of firms reported an increase in interest rates on bank loans, up from 42% in the previous quarter. Large firms experienced these increases more frequently (net 55%, up from 41%) compared to small and medium-sized enterprises (SMEs), which saw a decrease in reported increases (net 38%, down from 43%).
Loan availability saw a notable decline, falling to a net -5% in the third quarter of 2026, compared to a net -1% in the second quarter. This decline was observed across both sectors: SMEs reported a net -5% change (down from -4%), while large firms reported a net -6% change, a significant drop from the 4% reported in the previous period. Consequently, the bank loan financing gap indicator—which measures the difference between changes in financing needs and loan availability—remained positive at a net 2%, down from 3% in the previous quarter.
Financing needs showed divergent trends based on firm size. While SMEs reported broadly unchanged needs (net 1%, compared with 2% in the previous quarter), large firms reported a decrease in needs (net -6%, down from 3%). Other financing costs, such as fees and commissions, saw a decrease in reported increases, with a net 27% of firms reporting rises compared to 31% in the previous quarter. However, collateral requirements saw an increase in reported tightening, rising to a net 14% from 10%.
Regarding the drivers of financing constraints, firms identified the general economic outlook as the primary factor, with net 31% of respondents citing it (up from 29%). Large firms expressed higher pessimism regarding this outlook (net 35%) than SMEs (net 29%). Meanwhile, the impact of firm-specific outlooks, such as sales and profits, on financing availability saw a slight decrease to a net 9% from 10% in the previous round.
The ECB noted that the survey's sample composition changed substantially this round, with first-time respondents making up the majority of the 12,822 enterprises surveyed. This shift makes interpreting numerical data, such as inflation and selling price expectations, more challenging. While median inflation expectations remained broadly unchanged among returning firms, they rose significantly within the full sample. The survey was conducted between 26 August and 2 October 2026.