Euro area firms reported a sharp rise in interest rates on bank loans in the second quarter of 2026, alongside broadly steady access to bank credit overall, according to the latest Survey on the Access to Finance of Enterprises (SAFE).
Interest rates increased for a net 42% of firms, up from 26% in the previous quarter, with similar reports from small and medium-sized enterprises and large firms, the SAFE results said, as cited by the European Central Bank (ECB) in a release on Monday.
Other financing costs such as charges, fees and commissions rose for a net 31% of firms, down from 37%, while collateral requirements increased for a net 10%, down from 14%.
Financing needs for bank loans edged up slightly, with a net 2% of firms reporting higher needs compared with 0% in the first quarter, while the availability of bank loans was broadly unchanged at net -1%, the survey said.
The picture differed by size: loan availability rose for large firms (net 4%) but fell for SMEs (net -4%).
The survey’s bank loan financing gap — an indicator comparing firms’ need for loans with their reported availability — remained positive and ticked up to 3% from 2% in the previous quarter.
Fewer firms than before expected the availability of external financing to deteriorate.
Prices, inflation and the war in the Middle East
Firms said the general economic outlook remained the main factor constraining access to external finance, with a net 29% reporting it as a limiting factor, up from 26% in the previous round, the survey found.
Firms also reported a modest improvement in banks’ willingness to lend, at net 6% compared with 5% previously.
Companies expected slower growth in prices and costs over the next 12 months.
Firms forecast selling prices would rise by 3.2%, down from 3.5%, while non-labour input costs — including energy — were expected to increase by 5.2%, down from 5.8%. Wage expectations eased to 2.5% from 2.8%.
Firms’ inflation expectations were largely stable at one and three years ahead, with median expectations at 3.0% for both horizons, unchanged from the previous quarter.
Median five-year-ahead inflation expectations rose slightly to 3.1% from 3.0%.
Companies also described how they were responding to the ongoing war in the Middle East, with 36% saying they were seeking alternative suppliers for inputs and materials and 29% doing so for energy.
A further 31% reported investing in energy efficiency, while 21% said they were increasing inventories or building stockpiles.
Most firms planning to invest in artificial intelligence over the next year expected to fund it from internal resources, with 72% naming internal funds.
Bank loans, grants and leasing were each cited by around 16% of firms, while equity or venture capital was mentioned by 6% and debt securities by 1%.
The SAFE survey was conducted between 21 May and 26 June 2026, covering developments from April to June, and included 5,087 euro area firms, of which 92% had fewer than 250 employees.
