## The euro area bank lending survey, April 2016 — Introduction and selected sections (blssurvey_201604)

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---

### Survey scope and timing
- Results relate to changes during the first quarter of 2016 and expectations for the second quarter of 2016.
- The survey was conducted between 11 and 30 March 2016.
- Response rate: 100%.
- Sample: 141 banks covering all euro area countries; results reported for the euro area and for Germany, France, Italy, Spain and the Netherlands.

### Key findings — credit standards and loan demand (Q1 2016 and Q2 2016 expectations)
- Loans to enterprises
  - Credit standards: net easing of -6% in Q1 2016 (previous quarter: -4%).
  - Historical context: net easing stronger than the historical average since 2003.
  - Expectation for Q2 2016: continued net easing of -4%.
  - Net demand: 17% in Q1 2016 (previous quarter: 27%).
  - Main drivers of net easing: competition (primary); risk perceptions and reduced cost of funds and balance sheet constraints contributed marginally to easing; banks’ risk tolerance contributed marginally to tightening.
- Loans to households for house purchase
  - Credit standards: net tightening of 4% in Q1 2016 (previous quarter: -7%).
  - Level relative to history: remained below the historical average since 2003.
  - Expectation for Q2 2016: continued net tightening of 7%.
  - Net demand: 32% in Q1 2016 (previous quarter: 29%).
  - Main drivers of net tightening: implementation of the EU mortgage credit directive (notably in Germany) and a net tightening impact of banks’ risk tolerance; competition continued to exert an easing impact.
- Consumer credit and other lending to households
  - Credit standards: net easing of -3% in Q1 2016 (previous quarter: 1%).
  - Expectation for Q2 2016: continued net easing of -7%.
  - Net demand: 16% in Q1 2016 (previous quarter: 21%).
  - Main driver of net demand: spending for durable goods.
- Terms and conditions on new loans
  - Net easing of overall terms and conditions continued for loans to enterprises.
  - Net easing intensified for housing loans and consumer credit, mainly via loan margins (spread over reference rates).
  - Competition was the dominant contributor to net easing of terms and conditions.
- Loan application outcomes
  - Share of rejected applications decreased (net) for loans to enterprises and housing loans.
  - Share of rejected applications increased for consumer credit.

### Cross-country highlights (largest euro area countries)
- Credit standards for loans to enterprises:
  - Eased in Italy and Germany.
  - Unchanged in Spain and the Netherlands.
  - Continued to tighten in France (net terms).
- Credit standards for housing loans:
  - Net easing in Italy and Spain.
  - Net tightening in Germany and the Netherlands.
  - Unchanged in France.

### Ad hoc items — funding, APP and negative deposit facility rate
- Funding access (Q1 2016)
  - Retail funding: access unchanged.
  - Wholesale funding: access to debt securities deteriorated; access to securitisation improved; money market access broadly unchanged.
- Impact of the ECB’s expanded asset purchase programme (APP)
  - Banks mainly used additional APP-related liquidity to grant loans.
  - APP reported as having a negative impact on profitability.
  - APP’s net easing impact appeared stronger for terms and conditions than for credit standards; easing impact on terms and conditions had declined versus October 2015.
- Impact of the ECB’s negative deposit facility rate (DFR)
  - Positive impact on lending volumes, particularly for loans to households.
  - Negative impact on banks’ net interest income and loan margins.

---

### 2.1 Loans to enterprises — credit supply, terms and demand

- 2.1.1 Credit standards
  - Net easing in Q1 2016: -6% (from -4% in previous quarter).
  - Easing was stronger for loans to large firms than to SMEs.
  - Country specifics:
    - Italy and Germany: eased.
    - Spain and Netherlands: unchanged.
    - France: tightened (net).
  - Q2 2016 expectation: continued net easing of -4%.
  - Contributing factors in Q1 2016:
    - Competition: main easing factor.
    - Risk perceptions and cost of funds/balance sheet constraints: marginal easing contributions.
    - Risk tolerance: marginal tightening impact.
  - Country-level factor notes:
    - Competition easing in all large countries, especially the Netherlands.
    - Perception of risk eased standards in Italy, tightened in France.
    - Cost of funds/balance sheet constraints eased in France; broadly unchanged elsewhere.
    - Risk tolerance marginally eased in Germany; tightened in France.

- 2.1.2 Terms and conditions
  - Overall terms and conditions eased in Q1 2016.
  - Reported changes (net percentage / table references):
    - Euro area overall terms and conditions change in 2016Q1 reported as -5 (Table 2 shows overall terms and conditions change as -5 for 2016Q1).
    - Banks' margins on average loans: euro area shown as -1 (2015Q4) to -2 (2016Q1) in Table 2.
    - Banks' margins on riskier loans: euro area shown as -6 for 2016Q1 (Table 2 variations noted).
  - Country patterns:
    - Easing in all large countries except the Netherlands.
    - Narrowing of margins on average loans in Italy and Spain; margins on riskier loans widened considerably in the Netherlands.
  - Non-rate terms (non-interest charges, loan size, collateral, maturity) continued to ease.
  - Competition strongly contributed to easing across large countries; Netherlands saw cost of funds and balance sheet constraints contribute to tightening.

- 2.1.3 Rejection rates
  - Euro area rejection rate for enterprise loan applications: net -4% in Q1 2016 (previous quarter: -3%).
  - Rejection rate decreased in Italy and Spain; unchanged in other large countries.

- 2.1.4 Demand for enterprise loans
  - Net demand increased to 17% in Q1 2016 (previous quarter: 27%).
  - Expected continued increase in Q2 2016.
  - Main contributors in Q1 2016: inventories and working capital; general level of interest rates; M&A activity (other financing needs); fixed investment.
  - Reduced contribution from fixed investment and low interest rates compared with prior quarter explained less pronounced increase.
  - Use of alternative finance slightly dampened loan demand (internal financing and issuance of debt securities).
  - Country specifics:
    - Inventories and working capital supported demand in Germany, Italy and Spain.
    - Low interest rates increased demand in all large countries except France.
    - M&A supported demand in all large countries except Italy.
    - Netherlands: other financing needs (debt refinancing/renegotiation) strongly contributed to demand.
    - Germany and Spain: alternative finance dampened demand via internal funds and other external financing.

---

### 2.2 Loans to households for house purchase — standards, terms and demand

- 2.2.1 Credit standards
  - Net tightening in Q1 2016: 4% (previous quarter: -7%).
  - Net tightening below the historical average since 2003.
  - Main contributors to net tightening:
    - Implementation of the EU mortgage credit directive (other factors), requiring in-depth creditworthiness assessments (driven by banks in Germany).
    - Small net tightening impact of banks’ risk tolerance.
    - Competition continued to exert a considerable easing impact.
  - Country developments:
    - Italy and Spain: net easing.
    - Germany and the Netherlands: net tightening.
    - France: unchanged.
    - Netherlands: earlier reported EU directive impact in 2015Q3; Netherlands reported net tightening impact of banks’ risk tolerance.
  - Outlook: banks expect continued net tightening in Q2 2016.

- 2.2.2 Terms and conditions
  - Overall terms and conditions eased more strongly in Q1 2016.
  - Main drivers: reductions in margins on average loans and on riskier loans.
  - Offsetting tightening in collateral requirements and loan-to-value ratios.
  - Country details:
    - Spain, Italy, France: considerable net easing driven by margins on average loans and margins on riskier loans.
    - Germany: marginal tightening driven by maturities; loan margins eased marginally for average loans and unchanged for riskier loans.
    - Netherlands: net increase in margins on average loans, collateral requirements and other terms driven by tightening of loan-to-value ratios.
  - Competition remained the main contributor to net easing of terms and conditions.

- 2.2.3 Rejection rate
  - Net share of rejected housing loan applications: -7% in Q1 2016 (previous survey: -4%).
  - Rejection rate declined in France, Italy and Spain; unchanged in Germany and the Netherlands.

- 2.2.4 Demand for housing loans
  - Net demand: 32% in Q1 2016 (previous quarter: 29%).
  - Increase above the historical average and exceeded prior expectations.
  - Country developments: all large countries reported an increase except Spain, where it turned negative.
  - Main drivers: low interest rates and improved housing market prospects; positive impact of consumer confidence diminished.
  - Country specifics: housing market prospects and low interest rates particularly strong drivers in the Netherlands, Italy and France; regulatory/fiscal changes dampened demand especially in the Netherlands.
  - Outlook: banks expect demand to increase further in Q2 2016.

---

### 3.1–3.3 Funding, APP and negative DFR — impacts and uses

- Banks’ access to funding (Q1 2016 and Q2 2016 expectations)
  - Retail funding access: unchanged in Q1 2016; expected to improve in Q2 2016.
  - Wholesale funding: access to debt securities deteriorated in Q1 2016; expected to improve in Q2 2016.
  - Securitisation: access improved in Q1 2016; expected continued improvement; note ~45% of banks replied “not applicable” on securitisation.

- 3.2 Impact of the APP — overview and financial situation
  - Overall financial situation improved over past six months because of APP, except profitability.
  - Expectations: banks broadly expect continued improvement over next six months, except for profitability.

- 3.2.1 APP impacts — selected net percentages (past six months and expectations)
  - Total assets: net +5% reported increase over past six months (down from 10% in October 2015); expected net +7% over next six months.
  - Euro area sovereign bond holdings: net -8% over past six months; expected -3% over next six months.
  - Liquidity position: net +27% over past six months (up from 23%); expected continued improvement.
  - Market financing conditions: net +19% improvement over past six months (down from 30%); expected net +22% over next six months.
  - Profitability:
    - Overall profitability impact (past six months): net -19% (down from 2% in October 2015).
    - Net interest margins (past six months): net -27% (down from -7% in prior round).
    - Capital gains: net +12% (down from 17%).
    - Expected profitability impact over next six months: net -22%.
  - Capital and leverage ratios: slightly positive net impact reported over past six months; neutral expected over next six months.

- 3.2.2 Uses of additional APP-related liquidity (past six months and expectations)
  - Sources of additional liquidity: sales of marketable assets; increase in customer deposits.
  - Uses of liquidity from sales of marketable assets (past six months):
    - Granting loans: 16% of banks (down from 29%).
    - Refinancing (maturing debt): 10% (down from 21%).
    - Purchasing marketable assets: net 0% (down from 21%).
    - Lending breakdown: loans to enterprises 20% (previous: 39%); housing loans 15% (previous: 14%); consumer credit 13% (previous: 36%).
  - Uses of liquidity from increased customer deposits (past six months):
    - Granting loans: 25% of banks (stable).
    - Refinancing: 11% (down from 19%).
    - Purchasing marketable assets: 1% (down from 13%); expected 6% impact next six months.
    - Lending breakdown: loans to enterprises 30% (up from 26%); house purchase 22% (down from 24%); consumer credit 22% (down from 24%).
  - Substitutions from increased customer deposits (past six months):
    - Substituting interbank lending: 14% (down from 17%).
    - Substituting maturing debt: 11% (down from 23%).
    - Substituting Eurosystem liquidity operations: 7% (down from 15%).

- 3.2.3 APP impact on lending conditions (net easing over past six months and expectations)
  - Credit standards:
    - Loans to enterprises: net easing -3% (October 2015: -4%); expected next six months: -2%.
    - Housing loans: net easing -2% (stable).
    - Consumer credit: net impact 0% (up from -1%).
  - Credit terms and conditions:
    - Loans to enterprises: net impact on terms and conditions -11% (up from -29%).
    - Housing loans: broadly stable at -14%.
    - Consumer credit: -9% (up from -22%).
  - Expected favourable impact on terms and conditions to remain similar over next six months.

- 3.3 Impact of the negative deposit facility rate (DFR) — selected net percentages
  - Net interest income:
    - Past six months: net 81% of banks reported a decline.
    - Expected next six months: net 85% expect a decline.
  - Loans to enterprises:
    - Past six months: net 45% indicated a decline in lending rates.
    - Past six months: net 27% indicated a decline in loan margin.
    - Past six months: net 8% indicated an increase in non-interest rate charges.
    - Lending volumes: past six months net 2% (essentially no impact); expected next six months net 11% increase.
    - Expected next six months: net 30% expect a decline in loan margins.
  - Loans to households for house purchase:
    - Past six months: net 49% indicated a decline in lending rates.
    - Past six months: net 33% indicated a decline in loan margin.
    - Past six months: net 9% indicated an increase in non-interest rate charges.
    - Housing lending volumes: past six months net 16% reported a positive impact.
  - Consumer credit: broadly similar evidence to housing loans on declines in lending rates and margins and on lending volumes.

---

### 3.4 Banks’ assessment of current level of credit standards versus historical ranges

- Survey design
  - Comparative ranges:
    - (i) Q1 2003 to current quarter.
    - (ii) Q2 2010 to current quarter.
  - “Midpoint of the range” defined as midpoint between maximum and minimum during the period.
  - “In net terms” defined as difference between shares reporting tighter and shares reporting looser (categories specified).

- Loans to enterprises (all NFCs)
  - Compared with midpoint since 2003:
    - Net: 42% of banks assessed current credit standards as tighter versus the midpoint (Q1 2016).
    - One year earlier: 39%.
    - Composition: 56% reported tighter (up from 53%); 14% reported looser (unchanged).
    - Interpretation: despite net easing since Q2 2014, levels remain higher than the 2003–present historical range.
  - Compared with midpoint since Q2 2010:
    - Net: 3% assessed current level as broadly similar to the benchmark (down from 16%).
    - Composition: 33% reported tighter (broadly unchanged); 30% reported looser (up from 18%).

- Loans to households — house purchase (HP)
  - Compared with midpoint since 2003:
    - Net: 30% assessed current credit standards as tighter (Q1 2016), down from 46% one year ago.
    - Composition: 44% reported tighter (down from 55%); 14% reported looser (up from 9%).
    - Interpretation: reflects overall net easing of housing loan standards over the past year.
  - Compared with midpoint since Q2 2010:
    - Net: 11% assessed current level as tighter (down from 24%).
    - Composition: 33% reported tighter (broadly unchanged); 21% reported looser (up from 10%).

---

### Annex highlights — selected tabular results (Annex 1 and Annex 2)
- Annex 1 (standard questions) — selected values preserved from source tables:
  - Loans to enterprises — credit standards (Apr 16):
    - Overall net percentage: -6; diffusion index: -3; mean: 3.02; number of banks responding: 136.
    - SMEs net percentage: -6; mean: 3.03; number responding: 131.
    - Large enterprises net percentage: -8; mean: 3.05; number responding: 132.
    - Short-term loans net percentage: -10; mean: 3.01; number responding: 136.
  - Share of rejected enterprise loan applications (Apr 16):
    - Net percentage: -4; diffusion index: -2; mean: 2.93; number responding: 134.
  - Demand for enterprise loans (Apr 16):
    - Net percentage overall: 17; diffusion index examples and means reported in tables (numbers preserved in Annex).
  - Loans for house purchase (Apr 16):
    - Credit standards net percentage: 4; overall terms and conditions mean around 3.10; net demand: 32; mean: 3.24; number responding: 130.
  - Consumer credit (Apr 16):
    - Credit standards net percentage: -3; overall terms and conditions mean around 3.13.

- Annex 2 (ad hoc questions) — tabular entries reproduced verbatim in the source:
  - Market access tokens and numeric sequences for short-term deposits, debt securities, securitisation and ability to transfer credit risk preserved as in source tables.
  - APP impacts and uses: numeric tokens for total assets, sovereign bond holdings, liquidity position, sales of marketable assets, deposits, market financing conditions, profitability, net interest margin, capital gains, capital ratios, and leverage reproduced verbatim in Annex tables.
  - Uses of additional liquidity from sales of marketable assets and from increased customer deposits: percentages and table tokens for lending to enterprises, house purchase and consumer credit preserved as in the source.
  - Question A4 and A5: APP effect on credit standards, terms and conditions, and DFR effects captured with the net percentage results summarized in main sections; detailed numeric table tokens available in Annex 2.
  - Question A6: distributions of current credit standards relative to historical ranges reproduced in categorical numeric tokens in Annex 2.

*The euro area bank lending survey, April 2016 (blssurvey_201604).*

### Introduction 3

### Introduction 3

### Survey scope and timing
- Results relate to changes during the first quarter of 2016 and expectations for the second quarter of 2016.
- The survey was conducted between 11 and 30 March 2016.
- The response rate was 100%.
- The report contains results for the euro area as a whole and for the five largest euro area countries (Germany, France, Italy, Spain and the Netherlands).
- The BLS sample group in the current survey round comprises 141 banks, representing all of the euro area countries.

### Key findings — credit standards and loan demand (first quarter of 2016 and Q2 2016 expectations)
- Loans to enterprises
  - Net easing of credit standards: -6% in Q1 2016 (compared with -4% in the previous quarter).
  - The net easing was stronger than the historical average since 2003.
  - Banks expected a continued net easing in Q2 2016: -4%.
  - Net demand for loans to enterprises continued to increase: 17% in Q1 2016 (down from 27% in the previous quarter).
  - Main drivers of net easing in credit standards: competition (primary), with risk perceptions and reduced cost of funds and balance sheet constraints contributing marginally to net easing; banks’ risk tolerance had a marginal tightening impact.
- Loans to households for house purchase
  - Credit standards tightened: 4% in Q1 2016 (up from -7% in the previous quarter).
  - Credit standards remained below the historical average since 2003.
  - Banks had expected credit standards to remain broadly unchanged.
  - Banks expect a continued net tightening in Q2 2016: 7%.
  - Net demand for housing loans increased further: 32% in Q1 2016 (up from 29% in the previous quarter).
  - Main drivers of net tightening: implementation of the EU mortgage credit directive (particularly in Germany) and a net tightening impact of banks’ risk tolerance; competition continued to have a considerable easing impact.
- Consumer credit and other lending to households
  - Credit standards returned to a net easing: -3% in Q1 2016 (down from 1%).
  - Banks expect continued net easing in Q2 2016 for consumer credit: -7%.
  - Net demand for consumer credit continued to increase: 16% in Q1 2016 (down from 21%).
  - Main driver of net demand: spending for durable goods.
- Terms and conditions on new loans
  - Net easing of overall terms and conditions continued for loans to enterprises.
  - Net easing intensified for housing loans and consumer credit, mainly driven by loan margins (defined as spread over relevant market reference rates).
  - Competition continued to contribute most to net easing of terms and conditions.
- Loan application outcomes
  - The share of rejected applications decreased in net terms for loans to enterprises and housing loans.
  - The share of rejected applications increased for consumer credit.

### Cross-country highlights (largest euro area countries)
- Credit standards for loans to enterprises:
  - Eased in Italy and Germany.
  - Remained unchanged in Spain and the Netherlands.
  - Continued to tighten in France in net terms.
- Credit standards for housing loans:
  - Net easing reported in Italy and Spain.
  - Net tightening reported in Germany and the Netherlands.
  - Unchanged in France.

### Ad hoc questions — funding, APP and negative deposit facility rate
- Banks’ access to funding
  - Access to retail funding remained unchanged in Q1 2016.
  - Access to wholesale funding: access to debt securities deteriorated, while access to securitisation improved.
- Impact of the ECB’s expanded asset purchase programme (APP)
  - Banks have mainly used additional liquidity related to the APP to grant loans.
  - Euro area banks reported that the APP had a negative impact on their profitability.
  - The net easing impact of the APP appears stronger for terms and conditions than for credit standards, although its impact on terms and conditions has declined compared with the October 2015 survey.
- Impact of the ECB’s negative deposit facility rate
  - Positive impact on lending volumes, in particular for loans to households.
  - Negative impact on banks’ net interest income and loan margins.

### Banks’ assessment of current level of credit standards versus historical ranges
- Euro area banks assessed their current level of credit standards for both loans to enterprises and housing loans as tighter than the historical range since 2003, despite the overall net easing during the past year.
- Euro area banks assessed their current level of credit standards on loans to enterprises as broadly comparable with the shorter range since the second quarter of 2010.

### Methodology and measurement notes (Box 1: General notes)
- The BLS is addressed to senior loan officers of a representative sample of euro area banks; the main purpose is to enhance understanding of bank lending behaviour in the euro area.
- Three loan categories are distinguished: loans or credit lines to enterprises; loans to households for house purchase; and consumer credit and other lending to households.
- Questions cover credit standards for approving loans, credit terms and conditions on new loans, credit demand, factors affecting supply and demand, and the share of loan rejections.
- Survey questions reference changes over the past three months (Q1 2016) or expectations over the next three months (Q2 2016).
- Net percentage measure: difference between the share of banks reporting tightened credit standards and the share reporting eased credit standards (positive = net tightening; negative = net easing). Net demand defined analogously.
- Diffusion index alternative: weighted difference where responses of “considerably” carry twice the weight (score of 1) of “somewhat” (score of 0.5); interpretation follows net percentages.
- Aggregation procedure:
  - Step 1: individual bank results aggregated to national results (implicit or explicit weighting).
  - Step 2: national results aggregated to euro area results using explicit weighting based on national shares in amounts outstanding of loans to euro area non-financial corporations and households.
- For France, Malta, the Netherlands and Slovakia, net percentages are weighted based on amounts outstanding of loans of individual banks in the national samples.
- Detailed tables and charts are provided in Annex 1 (standard questions) and Annex 2 (ad hoc questions).
- A copy of the questionnaire is available at the ECB’s BLS web page.

*The euro area bank lending survey, April 2016 — Introduction*

### 2.1 Loans to enterprises

### 2.1 Loans to enterprises

### 2.1.1 Credit standards for loans to enterprises eased further in the first quarter of 2016
- Banks reported a further net easing in credit standards on loans to enterprises in Q1 2016: -6%, down from -4% in the previous quarter.
- The net easing in Q1 2016 was slightly more pronounced than expected in the previous survey round.
- By firm size, credit standards were eased more strongly for loans to large firms than to small and medium-sized enterprises (SMEs).
- Large euro area countries:
  - Italy: credit standards on loans to enterprises eased.
  - Germany: credit standards on loans to enterprises eased.
  - Spain: credit standards remained unchanged.
  - Netherlands: credit standards remained unchanged.
  - France: credit standards continued to tighten in net terms.
- Banks expect continued net easing of credit standards on loans to enterprises in Q2 2016: -4%.
- Contributing factors in Q1 2016:
  - Competition remained the main factor behind the net easing of credit standards.
  - Risk perceptions and banks’ cost of funds and balance sheet constraints contributed marginally to the net easing.
  - Banks’ risk tolerance had a marginal tightening impact.
- Country-level factor impacts:
  - Competition: easing impact on standards in all large countries, especially in the Netherlands.
  - Perception of risk: contributed to easing in Italy; contributed to tightening in France.
  - Cost of funds and balance sheet constraints: contributed to easing in France; broadly unchanged for other large countries.
  - Risk tolerance: reported marginal easing contribution in Germany; tightening impact in France.

### 2.1.2 Terms and conditions for loans to enterprises continued to improve in the first quarter of 2016
- Overall terms and conditions that banks apply when granting new loans to enterprises continued to ease in Q1 2016.
- Changes in terms and conditions (net percentage changes, Q4 2015 to Q1 2016):
  - Euro area overall terms and conditions: -5 (from -1 in 2015Q4 to -2 in 2016Q1 are listed in Table 1 for factors; Table 2 shows overall terms and conditions change as -5 for 2016Q1)
  - Banks' margins on average loans: Euro area change from 2015Q4 to 2016Q1 shown as -1 to -2 in Table 2 (Euro area: -1 2015Q4; -2 2016Q1).
  - Banks' margins on riskier loans: Euro area change shown as -6 for 2016Q1 (Table 2 shows -5 2015Q4 to -2 2016Q1; Germany, Spain, France, Italy, Netherlands entries vary).
- Across large euro area countries, terms and conditions eased in all larger countries except for the Netherlands.
- Margins:
  - A considerable net percentage of euro area banks reported a further narrowing of margins on average loans to enterprises.
  - Margins on riskier loans were broadly unchanged in aggregate, with country exceptions.
  - In most large countries, particularly Italy and Spain, banks reported a narrowing of margins on average loans in net terms.
  - Margins on riskier loans widened considerably in the Netherlands.
  - In other large countries, margins on riskier loans either remained unchanged or narrowed further.
- Other terms and conditions (non-interest rate charges, loan size, collateral, maturity) continued to ease during Q1 2016.
- Country-level factor impacts on terms and conditions:
  - Competition contributed strongly to the easing in all large euro area countries.
  - Spain: the considerable net easing of overall credit terms and conditions was driven by a reduction in banks’ cost of funds and balance sheet constraints.
  - Netherlands: cost of funds and balance sheet constraints contributed strongly to the net tightening of terms and conditions.

### 2.1.3 Rejection rate for loans to enterprises has decreased
- Euro area banks reduced their rejection rate for loan applications from enterprises in net terms in Q1 2016: -4%, compared with -3% in the previous quarter.
- Across the largest euro area countries, the rejection rate decreased in Italy and Spain, while remaining unchanged in the other countries.

### 2.1.4 Increase in net demand for loans to enterprises
- Net demand for loans to enterprises increased in Q1 2016: 17%, down from 27% in the previous quarter.
- Banks expected an increase in loan demand from enterprises in Q2 2016.
- Main contributing factors for loan demand in Q1 2016:
  - Inventories and working capital.
  - The general level of interest rates.
  - M&A activity (included in other financing needs).
  - Fixed investment.
- The less pronounced increase in loan demand compared with the previous quarter was due to a smaller contribution from fixed investment and from the general level of interest rates.
- Use of alternative finance continued to have a slightly dampening effect on net loan demand by euro area firms:
  - Internal financing of firms and, to a smaller extent, issuance of debt securities by enterprises contributed negatively to loan demand.
- Country-level contributions to loan demand:
  - Inventories and working capital contributed to loan demand in Germany, Italy and Spain.
  - Low level of interest rates contributed to increased loan demand in all large countries except France.
  - M&A activity contributed positively to loan demand in all large countries except Italy.
  - Fixed investment: smaller positive contribution due to developments in Germany and Spain; contribution from Spain turned negative.
  - Netherlands: other financing needs contributed strongly to loan demand, mainly related to debt refinancing and renegotiation.
  - Germany and Spain: use of alternative finance had a dampening impact on loan demand related to internal funds and other external financing.

*Source: 2.1 Loans to enterprises (blssurvey_201604) from the euro area bank lending survey, April 2016*

### 2.2 Loans to households for house purchase

### 2.2 Loans to households for house purchase

### 2.2.1 Credit standards
- Banks reported a net tightening of credit standards for loans to households for house purchase of 4%, up from -7% in the previous quarter.
- This net tightening was below the historical average since 2003.
- Banks had expected broadly unchanged credit standards in the previous survey.
- Main contributing factors to net tightening:
  - Implementation of the EU mortgage credit directive (included in “other factors”), requiring an in-depth creditworthiness assessment of borrowers.
  - A small net tightening impact of banks’ risk tolerance.
  - Competition continued to have a considerable easing impact.
- Large-euro-area country developments:
  - Italy and Spain: net easing of credit standards.
  - Germany and the Netherlands: net tightening of credit standards.
  - France: credit standards remained unchanged.
  - The net tightening impact of the EU mortgage credit directive was driven by banks in Germany; banks in the Netherlands had earlier reported this impact in 2015Q3.
  - Banks in the Netherlands indicated a net tightening impact of banks’ risk tolerance.
  - Competition had an easing impact in all large euro area countries except Germany (neutral).
  - Banks’ risk perceptions had an easing impact in Italy, Spain and the Netherlands; neutral elsewhere.
  - Cost of funds and balance sheet constraints were neutral across the large countries.
- Outlook:
  - Euro area banks expect a continued net tightening of credit standards in Q2 2016.

### 2.2.2 Terms and conditions
- Overall terms and conditions applied when granting new housing loans: net easing intensified in Q1 2016.
- Main drivers of the easing:
  - Reduction in margins on average loans remained the main driver.
  - Margins on riskier loans were also considerably reduced in Q1 2016.
- Offsetting tightening:
  - Collateral requirements and other terms and conditions, especially loan-to-value ratios, were tightened.
- Large-euro-area country developments:
  - Spain, Italy and France: considerable net easing of overall terms and conditions, mainly driven by margins on average loans and, to a smaller extent, margins on riskier loans.
  - Germany: overall terms and conditions tightened marginally, driven by a net tightening of housing loan maturities; loan margins eased marginally in net terms for average loans and remained unchanged for riskier loans.
  - Netherlands: banks reported a net increase in margins on average loans, collateral requirements and other terms and conditions, mainly owing to a considerable tightening of loan-to-value ratios.
  - Banks in Italy indicated an easing impact for banks’ risk perceptions; impact neutral for other large countries.
  - Banks’ risk tolerance had an easing impact for banks in France, tightening impact for banks in the Netherlands.
- Factors affecting net easing of terms and conditions:
  - Competition remained the main factor contributing to net easing.
  - Other factors also contributed to the net easing.
  - For banks’ cost of funds and balance sheet constraints and risk perceptions, banks in France and Spain reported an easing impact on terms and conditions.

### 2.2.3 Rejection rate
- The net share of rejected applications for loans to households for house purchase declined to -7%, down from -4% in the previous survey round.
- Country developments:
  - Rejection rate declined in France, Italy and Spain.
  - Rejection rate remained unchanged in Germany and the Netherlands.

### 2.2.4 Demand for housing loans
- Net demand for housing loans increased to 32% in Q1 2016, compared with 29% in the previous quarter.
- The increase in demand remains above the historical average change in demand and exceeded banks’ expectations from the previous survey round.
- Country developments:
  - All large euro area countries reported an increase in net demand for housing loans, with the exception of Spain, where it turned negative.
- Main contributing factors to increased demand:
  - The low level of interest rates.
  - Improved housing market prospects.
  - The favourable impact of consumer confidence became smaller in Q1 2016.
- Country-specific drivers:
  - Housing market prospects and the general level of interest rates contributed positively to loan demand in all large countries; impact particularly strong in the Netherlands, Italy and France.
  - Changes in the regulatory or fiscal regime of housing markets (included in “other financing needs”) dampened loan demand, especially in the Netherlands (partly related to changes in the tax deduction of interest paid on mortgage loans).
- Outlook:
  - For Q2 2016, euro area banks expect demand to increase further.

*The euro area bank lending survey, April 2016 — Section 2.2 Loans to households for house purchase*

### 3.1 Banks’ access to retail and wholesale funding

### 3.1 Banks’ access to retail and wholesale funding

### Banks’ assessment of funding conditions and market access (Q1 2016 and expectations for Q2 2016)
- For the first quarter of 2016, euro area banks reported unchanged access to retail funding.
- Access to wholesale funding:
  - Access to debt securities deteriorated in Q1 2016 (net deterioration reported; see Chart 13 and Table 13).
  - Access to securitisation improved in net terms in Q1 2016.
  - For money markets, access remained broadly unchanged according to the banks.
- Looking ahead to Q2 2016, euro area banks expect:
  - An improvement in their access to debt securities markets.
  - A continued improvement in their access to retail funding.
  - A continued improvement in their access to securitisation.
- Note on securitisation responses: around 45% of banks replied “not applicable” in the first quarter of 2016 because securitisation is not relevant for them.

### Impact of the ECB’s expanded asset purchase programme (APP) — overview
- Banks were asked to consider direct and indirect effects of the APP on their financial situation, purposes for which they used additional liquidity, and impact on lending conditions.
- General assessment:
  - Euro area banks reported an overall improvement in their financial situation over the past six months as a result of the APP, with the exception of bank profitability.
  - Banks broadly expect their financial situation to improve in the next six months owing to the APP, except for profitability.

### 3.2.1 Impact of the APP on banks’ financial situation (past six months and expectations)
- Total assets:
  - Over the past six months, in net terms 5% of the euro area BLS banks reported an increase in their total assets (down from 10% in October 2015).
  - Banks expect a continued increase in total assets over the next six months: net percentage 7%.
- Euro area sovereign bond holdings:
  - Over the past six months, a net percentage of banks reported a decrease in holdings: -8% (broadly in line with October 2015 expectations).
  - Expected change over the next six months: net percentage -3%.
- Liquidity position:
  - Over the past six months, a net percentage of 27% of euro area banks indicated that their liquidity situation had improved (up from 23% in October 2015).
  - Banks expect this improvement to continue over the next six months.
  - The improvement was mainly a result of an increase in deposits from enterprises and households and, to a lesser extent, sales of marketable assets.
- Market financing conditions:
  - APP-related improvement over the past six months: net percentage 19% (down from 30% in the previous survey).
  - Banks expect this improvement to continue: net percentage 22% for the next six months.
  - Improvement was particularly noted for financing via covered bonds.
- Profitability:
  - Over the past six months, overall the APP had a negative impact on profitability: net percentage -19% (down from 2% in October 2015).
  - Net interest margins declined: net percentage -27% (down from -7% in the previous round).
  - Capital gains: net percentage 12% (down from 17% in the previous round).
  - Expected profitability impact over the next six months: net percentage -22%.
- Capital and leverage ratios:
  - A slightly positive net percentage of banks indicated the APP had a positive impact over the past six months.
  - Banks expect a neutral impact on capital and leverage ratios over the coming six months.

### 3.2.2 Purposes for which banks used additional APP-related liquidity
- Sources of additional liquidity:
  - Sales of marketable assets related to the APP.
  - Increase in customer deposits related to the APP.
- Use of liquidity from sales of marketable assets (past six months and expectations):
  - Granting loans: 16% of banks (down from 29%).
  - Refinancing (substituting maturing debt): 10% of banks (down from 21%).
  - Purchasing marketable assets: net impact 0% (down from 21% in prior survey).
  - Breakdown of lending uses (past six months):
    - Loans to enterprises: 20% (compared with 39% in previous survey).
    - Housing loans: 15% (compared with 14%).
    - Consumer credit and other lending to households: 13% (compared with 36%).
  - Expectations for coming six months: similar pattern to current round.
- Use of liquidity from increased customer deposits (past six months and expectations):
  - Granting loans: stable at 25% of banks.
  - Refinancing: 11% (down from 19%).
  - Purchasing marketable assets: 1% (down from 13%); some impact expected for next six months: 6%.
  - Lending breakdown (past six months):
    - Loans to enterprises: 30% (up from 26% in October 2015).
    - House purchase: 22% (down from 24%).
    - Consumer credit and other household lending: 22% (down from 24%).
  - Expected impact over coming six months: broadly similar.
- Refinancing uses from increased customer deposits (past six months):
  - Substituting interbank lending: 14% (down from 17%).
  - Substituting maturing debt: 11% (down from 23%).
  - Substituting Eurosystem liquidity operations: 7% (down from 15%).
  - Expected impact over next six months: broadly similar.

### 3.2.3 Impact of the APP on banks’ lending conditions
- Credit standards (net easing impact over past six months and expectations):
  - Loans to enterprises: net easing -3% (down from -4% in October 2015); expected over next six months: -2%.
  - Housing loans: net easing -2% (stable).
  - Consumer credit and other lending to households: net impact 0% (up from -1%).
- Credit terms and conditions (impact and changes vs October 2015):
  - Loans to enterprises: impact on terms and conditions net -11% (up from -29%).
  - Housing loans: broadly stable at -14%.
  - Consumer credit and other lending to households: -9% (up from -22%).
  - The favourable impact on terms and conditions is expected to remain similar over the next six months.

### 3.3 Impact of the ECB’s negative deposit facility rate (DFR)
- Survey included ad hoc question on DFR impact on net interest income, lending conditions, and lending volume; banks considered direct and indirect effects.
- Net interest income:
  - Over the past six months, a net percentage of 81% of euro area BLS banks reported a decline in their net interest income.
  - Expected over the coming six months: net percentage 85% reporting a decline.
- Loans to enterprises:
  - Over the past six months, net percentage 45% of euro area banks indicated a decline in their lending rates.
  - Over the past six months, net percentage 27% of euro area banks indicated a decline in their loan margin for these loans.
  - Over the past six months, net percentage 8% indicated the DFR led to an increase in non-interest rate charges for loans to enterprises.
  - Lending volumes to enterprises:
    - Past six months: net percentage 2% (essentially no impact).
    - Expected for coming six months: net percentage 11% (some impact expected).
  - Expected change in loan margins for loans to enterprises over next six months: net percentage 30% expecting a decline.
- Loans to households for house purchase:
  - Over the past six months, net percentage 49% of euro area banks indicated a decline in lending rates.
  - Over the past six months, net percentage 33% indicated a decline in their loan margin.
  - Over the past six months, net percentage 9% indicated the DFR led to an increase in non-interest rate charges for housing loans.
  - Housing lending volumes:
    - Past six months: net percentage 16% reported a positive impact.
    - Expected for next six months: components expected to remain similar.
- Consumer credit and other lending to households:
  - The impact of the DFR shows broadly similar evidence as for housing loans regarding declines in lending rates and loan margins, impact on non-interest charges, and on lending volumes.

*Source: The euro area bank lending survey, April 2016 (selected sections).*

### 3.4 Banks’ current level of credit standards

### Banks’ current level of credit standards

### Survey design and interpretation
- The April 2016 survey included, for the third time, an annual ad hoc question on the current level of credit standards compared with two historical ranges:
  - (i) levels that have prevailed between the first quarter of 2003 and the current quarter; and
  - (ii) levels that have prevailed between the second quarter of 2010 and the current quarter.
- Purpose: to put into perspective banks’ replies in the standard questions on changes in credit standards over the past three months.
- Caution: assessment of the current level, particularly compared with the long-term range since 2003, may be difficult for banks and should be viewed with some caution.
- Definition note: The “midpoint of the range” of credit standards is defined as the midpoint between the maximum and the minimum level of credit standards during the specified time period.
- Definition note (footnote 11): “In net terms” is defined as the difference between “tighter” (sum of percentages reporting "moderately tighter than the midpoint of the range", "considerably tighter than the midpoint of the range" and "at the tightest level during this period") and “looser” (sum of percentages reporting "moderately looser than the midpoint of the range", "considerably looser than the midpoint of the range", and "at the loosest level during this period").

### Loans to enterprises (All NFCs)
- Compared with the midpoint of the historical range since 2003:
  - In Q1 2016, in net terms, 42% of euro area banks assessed their current level of credit standards for loans to enterprises as tighter compared with the midpoint of the historical range since 2003.
  - This was similar to banks’ assessment one year ago: 39%.
  - Composition underlying the net assessment:
    - 56% of banks reported a tighter level than the historical range (up from 53% one year ago).
    - 14% of banks reported looser credit standards compared with the historical range (unchanged from one year ago).
  - Interpretation: Despite net easing of credit standards on loans to enterprises since Q2 2014 (from standard BLS questions), the level of credit standards for loans to euro area enterprises has remained higher than historical levels (since 2003).
- Compared with the midpoint of the shorter range since Q2 2010:
  - In net terms, banks assessed their current level of credit standards for loans to enterprises as broadly similar to the benchmark: 3% (down from 16%).
  - Composition:
    - 33% of banks reported a tighter level (broadly unchanged from one year ago).
    - 30% of banks reported looser credit standards (up from 18% one year ago).

### Loans to households — house purchase (HP) and consumer credit (CC)
- Loans to households for house purchase (HP), compared with midpoint since 2003:
  - In net terms, 30% of euro area banks continued to assess their current level of credit standards as tighter compared with the historical range since 2003.
  - This compares with 46% one year ago.
  - Composition:
    - 44% of banks reported tighter credit standards compared with the historical range (down from 55% one year ago).
    - 14% of banks reported a looser level than the historical range (up from 9% one year ago).
  - Interpretation: The lower net percentage compared with one year ago reflects the overall net easing of credit standards on housing loans over the past year.
- Loans to households for house purchase (HP), compared with midpoint since Q2 2010:
  - In net terms, banks reported that the current level of their credit standards on housing loans was tighter than the benchmark: 11% in net terms (down from 24%).
  - Composition:
    - 33% of banks reported a tighter level (broadly unchanged from one year ago).
    - 21% of banks reported looser credit standards (up from 10% one year ago).

### Charts and indicators referenced
- Chart 21: Impact of the negative DFR on banks’ net interest margin and bank lending (net percentage of respondents; over the past and next six months). Note: net percentages defined as difference between increases ("increased considerably" + "increased somewhat") and decreases ("decreased somewhat" + "decreased considerably"); results calculated as percentage of banks not replying “not applicable”; “expect.” denotes expectations in the current round.
- Chart 22: Level of credit standards for loans to enterprises and households relative to levels since 2003 (percentages of banks). Categories shown include: At the loosest level during this period; Considerably looser than the midpoint of the range; Moderately looser than the midpoint of the range; Levels have remained constant during this period; Basically identical to the midpoint of the range; Moderately tighter than the midpoint of the range; Considerably tighter than the midpoint of the range; At the tightest level during this period.
- Chart 23: Level of credit standards for loans enterprises and households, relative to levels since Q2 2010 (percentages of banks). Labels: “All NFCs” (loans to all non-financial corporations), “HP” (loans to households for house purchase), “CC” (consumer credit and other lending to households).

*Source: blssurvey_201604 — 3.4 Banks’ current level of credit standards (Euro area bank lending survey, April 2016).*

### Annex 1

### Annex 1 Results for the standard questions

### Loans or credit lines to enterprises — credit standards (Question 1)
- Overall (Long-term loans, Jan 16 / Apr 16):
  - Tightened considerably: 1 / 0
  - Tightened somewhat: 12 / 1
  - Remained basically unchanged: 93 / 91
  - Eased somewhat: 6 / 7
  - Eased considerably: 0 / 0
  - Total: 100 / 100
  - Net percentage: -4 / -6
  - Diffusion index: -2 / -3
  - Mean: 3.00 / 3.02
  - Number of banks responding: 136 / 136
- Loans to small and medium-sized enterprises (Jan 16 / Apr 16):
  - Net percentage: -5 / -6
  - Diffusion index: -3 / -3
  - Mean: 3.01 / 3.03
  - Number of banks responding: 131 / 131
- Loans to large enterprises (Jan 16 / Apr 16):
  - Net percentage: -2 / -8
  - Diffusion index: -1 / -4
  - Mean: 2.97 / 3.05
  - Number of banks responding: 130 / 132
- Short-term loans (Jan 16 / Apr 16):
  - Net percentage: -4 / -10
  - Diffusion index: -2 / -5
  - Mean: 3.01 / 3.01
  - Number of banks responding: 136 / 136

### Factors affecting credit standards for enterprises (Question 2)
- OVERALL (Jan 16 / Apr 16 — NetP / DI / Mean shown where present)
  - Costs related to your bank's capital position: 0 3 8 9 10 7 0 2 1 12.96 / 2.94
  - Your bank's ability to access market financing: 0 0 9 2 3 0 5 -2 -3 -1 -1 2.99 / 3.00
  - Your bank's liquidity position: 0 0 8 7 6 0 7 -1 -6 0 -3 2.97 / 3.03
  - Competition from other banks: 0 0 7 3 2 4 0 3 -1 4 -2 -3 3.12 / 3.19
  - Competition from non-banks: 0 0 9 3 3 0 4 -3 -2 -1 -1 2.98 / 2.97
  - Competition from market financing: 0 0 8 6 5 0 9 -3 -4 -1 -2 2.98 / 2.99
  - General economic situation and outlook: 0 3 9 1 5 0 2 -4 -2 -2 -1 3.00 / 2.99
  - Industry or firm-specific situation / borrower's creditworthiness: 0 5 8 4 9 0 2 -4 -4 -2 -2 3.01 / 3.00
  - Risk related to the collateral demanded: 0 2 9 6 0 0 2 1 2 11 2.96 / 2.95
  - Your bank's risk tolerance: 0 2 9 4 10 3 12 0 1 2.96 / 2.95
- SMALL AND MEDIUM-SIZED ENTERPRISES and LARGE ENTERPRISES: corresponding detailed NetP / DI / Mean entries present in tables (see annex).

### Terms and conditions for enterprise lending (Question 3)
- OVERALL (Jan 16 / Apr 16):
  - Overall terms and conditions — Net percentage and DI: 0 6 7 4 1 8 0 2 -1 7 -1 2 -9 -6 3.12 / 3.09
  - Your bank's margin on average loans: 0 7 6 2 2 7 1 2 -2 6 -2 1 -1 14 3.23 / 3.20
  - Your bank's margin on riskier loans: 0 7 8 6 5 0 3 -5 2 -3 13.02 / 2.96
  - Non-interest rate charges: 0 3 8 8 7 0 2 -7 -4 -3 -2 3.03 / 3.01
  - Collateral requirements: 0 2 8 9 8 0 2 -5 -6 -3 -3 3.01 / 3.02
  - Loan covenants: 0 2 8 7 9 0 2 -6 -7 -3 -4 3.01 / 3.03
  - Maturity: 0 2 9 2 5 0 2 -8 -3 -4 -1 3.04 / 2.99
- SMALL AND MEDIUM-SIZED ENTERPRISES and LARGE ENTERPRISES: margins and other terms reported with similar breakdowns and means around 3.00–3.24.

### Factors affecting terms and conditions for enterprise lending (Question 4) and share of rejected applications (Question 5)
- OVERALL impact on credit terms and conditions (Jan 16 / Apr 16):
  - Cost of funds and balance sheet constraints — NetP / DI / Mean: 0 5 8 8 3 12 -5 1 -20 32.99
  - Pressure from competition — NetP / DI / Mean: 0 3 6 3 3 10 3 -22 -28 -11 -14 33.24
  - Perception of risk — NetP / DI / Mean: 0 2 9 3 30 2 -5 -1 -2 32.98
  - Your bank's risk tolerance — NetP / DI / Mean: 0 3 9 4 10 33 2.95
- Share of rejected applications (Jan 16 / Apr 16):
  - Decreased somewhat: 6 / 8
  - Remained basically unchanged: 91 / 87
  - Increased somewhat: 3 / 4
  - Total: 100 / 100
  - Net percentage: -3 / -4
  - Diffusion index: -2 / -2
  - Mean: 2.93 / 2.93
  - Number of banks responding: 133 / 134

### Demand for enterprise loans (Question 6) and drivers (Question 7)
- Overall demand change (Long-term / Short-term / SMEs / Large enterprises — Jan 16 / Apr 16):
  - Net percentage examples: 27 / 17 / 28 / 22 / 15 / 15 / 18 / 13 / 3 / 5 / 19
  - Diffusion index examples: 13 / 8 / 14 / 12 / 8 / 7 / 9
  - Mean ranges reported around 3.09–3.23 depending on loan type and maturity
  - Number of banks responding: typically 130–135
- Drivers of loan demand (Jan 16 / Apr 16 — selected):
  - Fixed investment: 0 6 7 7 15 0 2 1 5 8 8 4 3.11 / 3.05
  - Inventories and working capital: 0 1 7 9 17 0 3 1 6 8 8 3.12 / 3.13
  - General level of interest rates: 0 0 8 5 14 0 2 2 5 1 4 12 73.20 / 3.09
  - Internal financing: 0 6 9 2 0 0 2 -3 -6 -2.92 / 2.90

### Expectations for credit standards and demand for enterprises (Questions 8–9)
- Expected credit standards over next three months (Jan 16 / Apr 16):
  - Tighten considerably: 1 / 0
  - Tighten somewhat: 0 2 / 0 5
  - Remain basically unchanged: 94 / 93
  - Ease somewhat: 5 / 6
  - Ease considerably: 0 / 0
  - Net percentage: -4 / -4 (Overall)
  - Diffusion index: -2 / -2
  - Mean: 2.99 / 3.01
  - Number of banks responding: 135 / 135
- Expected demand for enterprise loans over next three months (Jan 16 / Apr 16):
  - Net percentage examples for overall and maturities: 29 / 25 / 33 / 35 / 22 / 22 / 28 / 29 / 30 / 29
  - Diffusion index examples: 15 / 13 / 17 / 17 / 11 / 11 / 14 / 14 / 15
  - Mean ranges 3.17–3.30
  - Number of banks responding: 130–135

---

### Loans to households — credit standards and factors (Questions 10–11)
- Loans to households overall (Loans for house purchase / Consumer credit — Jan 16 / Apr 16):
  - Tightened considerably: 0 4 / 0 0
  - Tightened somewhat: 14 / 14
  - Remained basically unchanged: 91 / 88 / 99 / 90 (as applicable)
  - Eased somewhat: 5 / 4 / 0 7
  - Eased considerably: 3 / 0 / 0 0
  - Total: 100 / 100
  - Net percentage: -7 / 4 1 / -3
  - Diffusion index: -5 / 40 / -2
  - Mean examples: 3.07 / 2.90 / 2.96 / 3.01
  - Number of banks responding: 130–132
- Factors affecting credit standards for house purchase (Jan 16 / Apr 16 — selected):
  - Cost of funds and balance sheet constraints: 0 1 9 2 10 6 4 1 2 0 2.93 / 2.95
  - Competition from other banks: 0 0 7 6 1 7 0 6 -9 -17 -4 -8 3.06 / 3.15
  - Housing market prospects: 0 0 9 0 4 0 6 -1 -4 0 -2 2.97 / 3.00
  - Borrower’s creditworthiness: 0 0 9 3 10 60 -10 -12 2.96 / 2.98
  - Your bank's risk tolerance: 0 2 9 2 0 06 0 20 12.97 / 2.95

### Terms and conditions for house purchase and factors (Questions 12–13)
- Overall terms and conditions for house purchase (Jan 16 / Apr 16):
  - Overall terms and conditions: 0 2 7 8 15 0 6 -3 -1 3.00 / 3.10
  - Your bank’s loan margin on average loans: 0 4 5 4 3 5 16 -21 -32 -11 -17 3.16 / 3.32
  - Collateral requirements, LTV, loan size limits, maturity, non-interest charges: means range 2.95–2.98 to 3.04–3.10
- OVERALL IMPACT on credit terms and margins (Jan 16 / Apr 16):
  - Cost of funds and balance sheet constraints — Impact on credit terms: 0 0 8 9 4 16 -1 -5 -0 -3 33.03
  - Pressure from competition — Impact on margins: 0 2 6 0 29 26 -20 -29 -10 -16 33.27
  - Perception of risk — Impact on credit terms and margins: values around 3.06 / 2.98

### Consumer credit and other lending to households — factors, terms, rejections (Questions 14–17)
- Factors affecting credit standards for consumer credit (Jan 16 / Apr 16):
  - Cost of funds and balance sheet constraints: 0 0 9 4 2 0 40 -2 0 -1 2.96 / 2.98
  - Competition from other banks: 0 0 8 8 8 0 4 -5 -8 -2 -4 3.01 / 3.04
  - General economic situation and borrower creditworthiness: net effects small; means ~2.97–3.07
  - Your bank's risk tolerance: 0 1 9 3 20 40 -1 -2 2.96 / 2.97
- Terms and conditions for consumer credit (Jan 16 / Apr 16):
  - Overall terms and conditions: 0 0 7 9 17 04 -5 -1 7 -3 -8 3.02 / 3.13
  - Your bank’s loan margin on average loans: 0 4 7 3 18 14 -17 -16 -9 -9 3.13 / 3.13
  - Collateral requirements and loan size/maturity: means ~2.94–2.99
- Share of rejected household loan applications (Jan 16 / Apr 16):
  - Decreased somewhat: 9 / 7
  - Remained basically unchanged: 87 / 93
  - Increased somewhat: 5 / 3
  - Net percentage: -4 / -7 (loans for house purchase) and -4 (consumer credit)
  - Diffusion index: -2 / -4 / -2
  - Mean: 2.92–2.99
  - Number of banks responding: 127–130

### Demand for household loans (Questions 18–20) and expectations (Questions 21–22)
- Demand for house purchase loans (Question 19, Jan 16 / Apr 16):
  - Decreased somewhat: 10 / 6
  - Remained basically unchanged: 52 / 55
  - Increased somewhat: 34 / 38
  - Increased considerably: 4 / 0
  - Net percentage: 29 / 32
  - Diffusion index: 16 / 16
  - Mean: 3.26 / 3.24
  - Number of banks responding: 130 / 130
- Drivers of demand for house purchase (selected, Jan 16 / Apr 16):
  - Housing market prospects: 0 3 6 4 27 16 23 25 12 13 3.18 / 3.21
  - Consumer confidence: 1 0 8 0 14 06 26 13 13 63.19 / 3.10
  - General level of interest rates: 0 0 5 1 42 16 30 43 16 22 3.26 / 3.39
- Demand for consumer credit (Question 20): factors and means reported with small net effects; means around 3.11–3.21 for selected drivers.
- Expectations for credit standards to households over next three months (Question 21, Jan 16 / Apr 16):
  - Tighten considerably: 2 / 3 / 0 0
  - Tighten somewhat: 5 / 9 / 12
  - Remain basically unchanged: 86 / 84 / 89 / 90
  - Ease somewhat: 7 / 5 / 9 / 8
  - Ease considerably: 0 / 0
  - Net percentage examples: -1 / -7 / -8 / -7
  - Mean examples: 2.95 / 2.86 / 3.02 / 3.01
  - Number of banks responding: 129–131
- Expected demand for household loans over next three months (Question 22, Jan 16 / Apr 16):
  - Remain basically unchanged: 70 / 60 / 73 / 73
  - Increase somewhat: 26 / 35 / 26 / 23
  - Increase considerably: 0 / 5 / 0 / 3
  - Net percentage: 23 / 38 / 25 / 26
  - Diffusion index: 11 / 22 / 12 / 15
  - Mean: 3.18 / 3.39 / 3.20 / 3.26
  - Number of banks responding: 129–132

*Source: Annex 1 — Results for the standard questions (The euro area bank lending survey, April 2016).*

### Annex 2

### Annex 2 — Results for the ad hoc questions

### Question A1 — Market access and ability to transfer risk (past three months / next three months)
- Short-term deposits (up to one year): "1481140-103.060.50 / 1089110-103.060.41" (values presented as in source table).
- Long-term (more than one year) deposits and other retail funding instruments: "398720102.840.51 / 23931042.900.43".
- Very short-term money market (up to 1 week): "1782110-43.000.48 / 111845072.890.44".
- Short-term money market (more than 1 week): "113816082.880.47 / 17884032.930.41".
- Short-term debt securities (e.g. certificates of deposit or commercial paper): "2187370132.820.58 / 211834092.850.51".
- Medium to long term debt securities (incl. covered bonds): "0266590172.790.59 / 2571220-153.090.63".
- Securitisation of corporate loans: "1276202-203.180.57 / 1283150-123.070.49".
- Securitisation of loans for house purchase: "1769213-163.150.66 / 1475200-143.100.55".
- Ability to transfer credit risk off balance sheet: "078671-12.980.44 / 029080-73.030.38".

Notes: table entries preserve the original sequencing and numeric tokens as presented in the source.

### Question A2 — Impact of the ECB's expanded asset purchase programme on bank assets and other areas (past six months / next six months)
- Your bank's total assets (non-risk weighted volume): "03898065300387 / 1006730".
- euro area sovereign bond holdings: "012834016-830010837016-330".
- Your bank's overall liquidity position: "007226262731007623072330".
- sales of marketable assets: "0189912693001919026830".
- an increase in deposits from enterprises and households: "00791921221310184150121330".
- Your bank's overall market financing conditions: "02762111119310274240112231".
- asset-backed securities: "00918136930091814293".
- covered bonds: "025836425373006037325403".
- unsecured bank bonds: "019180267300087120261230".
- equity issued: "001000048030001000048030".
- Your bank's overall profitability: "22663906-193122666606-2231".
- net interest margin: "23259708-273123559408-3331".
- capital gains/losses: "1183132191231".
- of which: capital gains/losses out of sales of marketable assets: "1185112231031038611023830".
- Your bank's capital ratio: "01 918067300198106030".
- owing to capital release: "9550 25 1000025".
- Your bank's leverage ratio: "0 1954063300198 106030".

Notes: entries reproduced verbatim from the source table for past six months and next six months columns.

### Question A3 — Uses of additional liquidity from the ECB's expanded asset purchase programme (past six months / next six months)
- A) Increased liquidity resulting from your bank's sales of marketable assets
  - For substituting deposit shortfalls: "0496562.990.34 / 0298562.960.30".
  - For substituting maturing debt: "1890493.050.44 / 1693493.030.41".
  - For substituting interbank lending: "0397492.970.31 / 0397492.980.32".
  - For substituting Eurosystem liquidity operations: "3395493.020.44 / 2494493.020.45".
  - Loans to non-financial corporations: "02080493.140.51 / 21979493.180.57".
  - Loans to households for house purchase: "01585513.100.46 / 01684503.110.47".
  - Consumer credit and other lending to households: "11287493.090.50 / 11385493.100.51".
  - Euro area marketable assets, excluding sovereign bonds: "0199512.950.27 / 099502.970.36".
  - Non-euro area marketable assets: "00100502.940.26 / 00100502.940.25".
- B) Increased liquidity owing to an increase in customer deposits from enterprises and households
  - For substituting maturing debt: "01189313.110.35 / 0991303.080.31".
  - For substituting interbank lending: "01486293.090.44 / 0991293.040.38".
  - For substituting Eurosystem liquidity operations: "2593333.040.43 / 2593323.040.43".
  - Loans to non-financial corporations: "03070293.260.55 / 03069293.260.55".
  - Loans to households for house purchase: "02278303.180.50 / 02277293.180.50".
  - Consumer credit and other lending to households: "02278293.180.50 / 02278293.170.49".
  - Euro area marketable assets, excluding sovereign bonds: "0198322.970.28 / 0793323.030.37".
  - Non-euro area marketable assets: "0099362.970.26 / 0495353.010.34".

Notes: table entries preserved verbatim, showing percentages/indices and mean/standard deviation tokens as in the source.

### Question A4 — Effect of the ECB's expanded asset purchase programme on lending behaviour (past six months / next six months)
- A) Credit standards — past six months / next six months (selected rows reproduced verbatim)
  - For loans to enterprises (credit standards): "00964011-33000973011-230".
  - For loans to households for house purchase (credit standards): "00982016-230001000016030".
  - For consumer credit and other lending to households (credit standards): "001000014030001000015030".
- B) Terms and conditions — past six months / next six months (selected rows reproduced verbatim)
  - For loans to enterprises (terms and conditions): "008910111-1130018810111-1130".
  - For loans to households for house purchase (terms and conditions): "008612116-1430018810116-1030".
  - For consumer credit and other lending to households (terms and conditions): "00918114-930018711114-1130".

Notes: numerical tokens and layout preserved from the source's tabular presentation.

### Question A5 — Effects of the ECB's negative deposit facility rate (past six months / next six months)
- The source frames impacts on:
  - net interest income,
  - lending rates,
  - loan margin (spread),
  - non-interest rate charges,
  - lending volume.
- Detailed percentage/mean/standard deviation entries are presented in the source tables (table structure and numeric tokens retained in the PDF).

### Question A6 — Current level of credit standards relative to historical ranges
- (i) Current level compared with the range between Q1 2003 and now — distribution of positions (as presented in source)
  - Considerably tighter than the midpoint of the range: "2318192313".
  - Moderately tighter than the midpoint of the range: "3131361824".
  - Basically identical to the midpoint of the range: "2824273947".
  - Moderately looser than the midpoint of the range: "121911149".
  - Considerably looser than the midpoint of the range: "21200".
  - At the tightest level during this period: "23232".
  - Levels have remained constant during this period: "33234".
  - At the loosest level during this period: "00000".
- (ii) Current level compared with the range between Q2 2010 and now — distribution (as presented in source)
  - Considerably tighter than the midpoint of the range: "22292".
  - Moderately tighter than the midpoint of the range: "2922291928".
  - Basically identical to the midpoint of the range: "3336324343".
  - Moderately looser than the midpoint of the range: "2931312120".
  - Considerably looser than the midpoint of the range: "13000".
  - At the tightest level during this period: "23242".
  - Levels have remained constant during this period: "34335".
  - At the loosest level during this period: "10100".

Notes: responses are reported in the original categorical breakdown and numeric tokens as given in the source.

### Glossary — key definitions (selected)
- Capital: "Defined in accordance with the regulatory requirements set out in the CRR/CRD IV... It includes both tier 1 capital and tier 2 capital (supplementary capital)."
- Collateral: "The security given by a borrower to a lender as a pledge for the repayment of a loan."
- Consumer credit and other lending: "Consumer credit is defined as loans granted for mainly personal consumption of goods and services... Overdrafts and credit card loans also typically belong in this category."
- Cost of funds and balance sheet constraints: descriptive definition as in source (explains capital, liquidity, transferability of risk, and NPLs).
- Credit standards: "the internal guidelines or loan approval criteria of a bank... both changes in written loan policies and their application should be considered."
- Credit terms and conditions: defined as the conditions of a loan actually approved (spread, size, fees, collateral, covenants, maturity).
- Debt refinancing/restructuring and renegotiation: definition and scope as in source.
- Demand for loans: "gross demand for loans from enterprises or households, including loan rollovers, but apart from normal seasonal fluctuations."
- Diffusion index: defined and the weighting scheme (considerably = weight 1; somewhat = weight 0.5).
- Loans: scope and reference to Regulation (EU) No 1071/2013 (ECB/2013/33) and exclusions (interbank loans excluded).
- Loan margin/spread over a relevant market reference rate: definition and components captured by the spread.
- Loan-to-value ratio, Marketing campaigns, Maturity, Net percentage, Non-banks, Non-interest rate charges, Perception of risk and risk tolerance: definitions as provided in the source glossary.

*Source: Annex 2, "Results for the ad hoc questions", The euro area bank lending survey, April 2016 (as presented in the supplied PDF content).*

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_Source: https://www.ecb.europa.eu/stats/pdf/blssurvey_201604.pdf_