Euro-area banks report record deterioration in retail-funding access
Summary
Euro-area banks reported the sharpest deterioration in retail-funding access since 2011, with the net share reporting worse access rising to 9% in the third quarter from 3% in the second. Banks cited higher rates, funding costs and balance-sheet constraints for tighter corporate loan terms, while risk perceptions and lower risk tolerance drove stricter approval standards. Firms also reported rising bank-loan interest rates, though changes in the survey sample complicate comparisons. Money and adjusted loan growth remained steady in September. Higher financing costs could weigh on Bitcoin demand by reducing investor borrowing and risk-taking, but any link to crypto is speculative. The ECB’s next policy decision was scheduled for Oct. 29.
