(ANSA) - ROME, MAY 02 - The demand for loans in the euro area in the first quarter of 2023 decreased sharply, driven by the increase in interest rates, the decrease in investments and the weakening of the real estate markets: the European Central Bank affirms in the latest survey on credit granted by banks.
The tightening of loans to businesses and for house purchase "was stronger than expected by banks in the previous quarter and indicates a persistent weakening of lending dynamics", writes the ECB, underlining how "the main drivers of the tightening have been a greater perception of risk and, to a lesser extent, a lower appetite for risk on the part of banks".
In the second quarter of 2023, euro area banks expect a further,
albeit more moderate, credit tightening on both business loans and home purchases.
(HANDLE).