OeNB Report 2024/18: Bank Lending Survey – Recession curbs loan demand

Austrian results of the October 2024 euro area bank lending survey – Executive summary

Gerald Hubmann ¹

Having started in the fourth quarter of 2022, the downward trend in demand for corporate loans in Austria continued in the third quarter of 2024, albeit at a very moderate pace. Over the entire period, the main reason for slowing corporate loan demand have been companies’ reduced funding needs for fixed investment.

Since 2022, survey results have indicated rising risk levels. As a result, Austrian banks have comprehensively tightened their corporate lending policies and have also increasingly rejected loan applications from companies. According to the survey results, the rejection rate in corporate lending has risen steadily since 2022 – more strongly for loan applications from small and medium-sized enterprises than for those from large companies.

Following a historic low, households’ demand for housing loans has been rising slightly again since early 2024. However, positive demand stimuli, particularly the recent slight decline in interest rates for housing loans, remain moderate for the time being.

Note: The full report in German can be found at OeNB Reports .