German banks tightened the terms and conditions for loans to enterprises and to households for house purchase by widening margins, according to a latest update from Bundesbank- Germany’s central bank. Credit standards for loans to enterprises and for loans to households for house purchase remained unchanged. Demand for credit increased further in all surveyed lines of business.
In the second half of 2019, the non-performing loans (NPL) ratio had no impact on changes in lending policy. Four banks from the German sample of the Bank Lending Survey took part in the second targeted longer-term refinancing operation of the third series (TLTRO III), conducted in December 2019.
The Bank Lending Survey (BLS) covers three loan categories: loans to enterprises, loans to households for house purchase, and consumer credit and other lending to households. The surveyed banks kept their credit standards (i.e. their internal guidelines or loan approval criteria) for loans to enterprises unchanged in the fourth quarter of 2019. The banks did not change their credit standards for loans for house purchase or for consumer credit and other lending to households, either
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