FRANKFURT: Euro zone banks tightened access to mortgages in the three months to September and expected to continue doing so in the final quarter of the year as they turned turn more cautious, a European Central Bank survey showed on Tuesday.
The ECB's Bank Lending Survey showed access to credit for companies was unchanged but the bar was raised for households looking for a housing loan, who also faced less favourable terms whenever a mortgage was granted.
"For housing loans, the net tightening was related to banks' risk tolerance and their cost of funds and balance sheet constraints," the ECB said.
"In the fourth quarter of 2021, banks expect a further net tightening of credit standards and, on balance, no change in demand for loans to households for house purchase."
Among the euro zone's largest economies, approval criteria for mortgages were tightened in Germany, Spain and France while they remained unchanged in Italy.
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