The Central Bank today reported the Irish
responses to the Eurozone Bank Lending Survey and during the final quarter of
2011, credit standards were unchanged on loans to enterprises. However, a
further decrease in loan demand from enterprises was reported. A
tightening of credit standards on loans to households for house-purchases was
reported for the fourth quarter of 2011 with a further tightening anticipated
for the first quarter of 2012. Loan demand from households for house purchases
weakened again during the final quarter of 2011.
Regarding consumer credit and other lending,
credit standards were unchanged during the fourth quarter of 2011, repeating a
result from the October round of the BLS. However, a further decrease in loan
demand was reported. A deterioration in banks’ retail and wholesale funding was
reported for the final quarter of 2011 with access to funding expected to remain
broadly unchanged during the first quarter of 2012.
The ECB reports that in the Eurozone, banks were
asked to report using a five point scale how the demand for loans from
enterprises changed during the final quarter of 2011. A decrease in loan demand
across all five loan categories examined was recorded for the final quarter of
2011, similar to the responses provided to the previous two rounds of the BLS.
In turn, the drop in loan demand was entirely attributed to a reduction in the
financing needs of enterprises rather than a change in the external funding
patterns of businesses.
Banks were also asked to report using a five
point scale how credit standards on loans to households for house purchases as
well as consumer credit and other lending changed during the fourth quarter of
20111. Repeating the results from the October 2011 round of the BLS, credit
standards tightened on loans to households for house purchases and were
unchanged in respect of consumer lending. The tightening of credit standards in
respect of mortgage lending was attributed to less favourable expectations
regarding economic activity along with diminished prospects for the housing
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