Fearful banks lending less

Banks lent less to businesses and homes in the first three months of this year as they fear a further deterioration in the economy.

The Central Bank, in its response to an EU-wide survey on bank lending, said banks had tightened their credit standards and reduced the level of lending to businesses for the first time since 2010.

“Heightened levels of risk perception, including diminished expectations regarding economic activity, less favourable industry or firm specific outlook and increased collateral risk were recorded,” the Central Bank response said.