Access to Credit Is Also Worsening for Large Euro Area Companies, ECB Survey Shows

Large companies in the euro area reported more difficult access to bank credit in the third quarter of 2026, following an improvement in the previous quarter, while SMEs continued to experience a deterioration. The survey published on Monday, October 26, by the European Central Bank shows that financing also became more expensive for applicants, against a backdrop of economic prospects considered less favorable by businesses.

In brief

1.The availability of credit deteriorated for both SMEs and large firms. For the latter, the balance of responses moved from +4% to −6%, a change of ten percentage points, not a 6% decline in the value of loans.

2.Among firms that applied for loans, credit lines or overdrafts, the net balance of those reporting higher interest rates reached 46%, up from 42%. Increases were more widespread among large companies than SMEs.

3.The share of firms that encountered obstacles in obtaining a loan rose from 5% to 7% among those for which bank credit was relevant. The indicator also includes firms that did not apply for fear of rejection.

4.Profits continued to deteriorate, but investment did not stop. The net balance of firms reporting higher investment was 8%, compared with 6% in the previous quarter.

5.More firms expect lower availability of external financing over the next three months. However, the ECB warns that the change in the sample complicates comparisons, especially concerning price and inflation expectations.

The most visible change compared with the second quarter concerns large firms. The credit availability indicator for this category fell from +4% to −6%. For SMEs, it moved from −4% to −5%, and for all firms from −1% to −5%. These responses come from businesses for which bank loans are relevant, meaning they used them or considered using them.

The figures are weighted net balances, calculated as the difference between the share of responses indicating an improvement and the share indicating a deterioration. The move among large firms from +4% to −6% means a change of ten percentage points in this indicator. It does not measure changes in the volume of credit granted by banks, nor the rejection rate of applications.

The cost of financing adds a second pressure. Among companies that applied for bank loans, including subsidized loans, credit lines or overdrafts, the net balance of those reporting higher interest rates rose from 42% to 46%. For large firms, it climbed from 41% to 55%; among SMEs, it remained positive but fell from 43% to 38%. Here too, the percentage does not express the size of the increase in credit costs, but the weighted difference between responses indicating increases and those indicating decreases.

Conditions are not limited to interest rates. A net balance of 27% of these applicants reported increases in fees and other bank charges, down from 31% in the previous quarter. By contrast, tighter collateral requirements were reported by a net balance of 14%, compared with 10%. For a company, the ability to obtain the required amount therefore also depends on the collateral demanded and the other costs of the contract.

Obstacles to obtaining a loan became somewhat more frequent. They affected 7% of firms for which bank credit was relevant, up from 5% in the second quarter. The ECB includes rejected applications, loans granted only in part, offers refused by firms because of excessive costs, and situations in which the company did not apply for fear of rejection. The 7% therefore does not represent exclusively applications rejected by banks.

From the same group of firms for which credit was relevant, 22% submitted applications, compared with 23% previously, while 50% did not apply because they had sufficient internal funds. The latter figure is not calculated solely among firms that did not seek credit. The results distinguish access difficulties from situations in which a company can finance itself internally.

Meanwhile, the need for loans declined, with a net balance of −2%, after +2% in the previous quarter. The indicator combining changes in credit needs and availability remained positive, at 2%, compared with 3%. It continues to signal financing pressure, but its value is lower than in the second quarter. It is not a deficit calculated in euros.

Businesses identify general economic prospects as the main factor limiting access to external financing. The net balance of firms reporting a negative impact from these prospects reached 31%, up from 29%. Large companies were more pessimistic than SMEs, at 35% and 29%, respectively. These are respondents’ assessments, not proof that a particular event alone caused the tightening of credit conditions.

The financial situation of firms explains why access to money matters beyond new projects. The net balance of companies reporting falling profits rose from 16% to 21%, while the balance of those indicating higher turnover fell from 9% to 4%. Material, energy and labor costs continued to rise for more firms than those reporting decreases, although the balances of these responses were lower than in the previous quarter.

Investment nevertheless continued to advance. The net balance of firms reporting higher spending on fixed assets rose from 6% to 8%, while the balance of businesses expecting an increase in the fourth quarter stands at 11%. Regarding the use of financing, from both external and internal sources, 38% of firms indicated inventories and working capital, and the same proportion mentioned investment in fixed assets. The categories are not mutually exclusive.

The deterioration is not uniform across countries. The ECB table shows a credit availability balance of −18% in both Germany and France, compared with −1% in Belgium, +6% in Italy and +21% in Portugal. In Belgium, the share of firms encountering obstacles rose from 1% to 3%. These data describe responses from national samples, not changes in the total volume of credit. Romania is not included in the euro area results presented here.

The 40th round of the SAFE survey on firms’ access to finance took place between August 26 and October 2 and covered 12,822 firms. Of these, 11,917, approximately 93%, had fewer than 250 employees. Approximately half responded about developments in July–September, and the rest about April–September. The quarterly indicators above refer to the three-month period, not the entire six-month interval.

The ECB warns that most respondents participated for the first time, which complicates the interpretation of questions requiring numerical estimates, particularly concerning prices, costs and inflation. The difference is important when reading the results. Firms participating in both rounds expect, on average, sales price increases of 3.6% over the next 12 months, compared with 7.1% in the entire current sample. For the first group, the median one-year inflation expectation remained at 3%, while for the entire current sample it is 4%. These differences alone do not demonstrate a change of the same magnitude in the expectations of the same firms.

The survey captures firms’ experiences and expectations. It is distinct from the ECB research that asks banks about lending standards and does not constitute a monetary policy decision. Over the next three months, more firms than in the previous round expect lower availability of external financing. Pressure is now also extending to large companies, as investment continues while profits provide weaker support.