Bank Lending Survey reveals tighter credit, softer demand in Q4 2025
The Banco de España's Bank Lending Survey for Q4 2025 indicates a slight tightening of credit supply and a moderation in demand. Lending standards tightened for consumer loans, while general conditions became stricter for corporate and housing loans.
Stricter terms for businesses and home buyers
The survey for Q4 2025 indicates a slight tightening of lending standards for consumer and other household loans, while remaining unchanged for housing acquisition and corporate financing.
General conditions for new loans, however, moderately tightened for corporate financing and household housing loans.
This included increased interest rates for both SMEs and large corporations, driven by a more negative perception of economic prospects.
For housing loans, higher perceived risks led to increased interest rates and ordinary loan margins.
Consumer loan conditions remained stable, though riskier loans saw slightly higher margins due to reduced risk tolerance.
The percentage of rejected loan applications increased slightly for household housing loans, remained stable for corporate financing, and slightly decreased for consumer loans.
Slowing demand, stable outlook for 2026
Credit demand from households for housing acquisition increased in Q4 2025, but at a more moderate pace than previously.
Demand for consumer loans remained stable, while corporate loan applications saw a slight decrease for both SMEs and large companies.
Banks attributed the rise in housing loan demand to lower interest rates, improved consumer confidence, and positive housing market expectations.
The decline in corporate financing demand stemmed primarily from reduced fixed capital investment and increased use of own funds.
For Q1 2026, banks anticipate a slight tightening of lending standards for household housing loans, with stability in corporate and consumer segments.
Overall credit demand is expected to stabilize.