The survey question we are considering here is: "Over the past 3 months, how have the following factors affected your bank's credit standards as applied to the approval of loans on credit lines to enterprises?"
- When it comes to the cost related to the bank's capital position, the percentage of banks reporting tighter (higher) costs was 6%, while the percentage of banks reporting easing of capital cost conditions was zero.
- There were zero banks reporting easing in capital costs conditions in April 2011 and January 2011.
- 2010 average for the percentage of banks reporting tighter cost conditions in excess of those reporting easing of conditions at the end of July (6%) was identical to the 2010 annual average.
- As shown in the chart below, bank's ability to access market funding remains on downward trend for second quarter in a row. At the end of July, the percentage of banks reporting tightening of access to market financing was 9%, same as for the three months through April 2011 and up on 4% in H2 2010.
- At the same time, percentage of banks reporting easing of access to market funding dropped from 2% in 3 months to October 2010, to 1% through January 2011, to 0% in 6 months since January 2011.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiT3cKBv0-9DnRgyZZYWpRqNmFtZ_OyAwPHMDWlGpGopaw7T4SpKBviy7N4gVABM2kOa23YQbpCZKkrOHl5fmyAGp0l0nxAyg0y6x7LhWQN387r3aIQsWMI-PcM50Fjf-C7b0BHIDu1Nu0W/s400/Screen+shot+2011-08-22+at+22.30.51.png)
And a summary plot of banks access to funding markets, showing new tightening trend:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicIZrtqLmhapT-f9_61YQYDLGSE5EmO_AVNQPGLeSHibCVFj1L5tK5HaAAIXY30cOJnOueUEfW7dXlWXSAM1dOB7PR55YaRq9i1omISlVXyNmVcKNMkvysHi0tc3AItkxupzxxwDvI9jeO/s400/Screen+shot+2011-08-22+at+22.31.18.png)
When it comes to the banks' liquidity positions, the story is also that of continued and deepening deterioration:
- 10% of banks in the survey stated that their liquidity conditions tightened in 3 months through July 2011, up from 8% in 3mo through April 2011 and 6% in 6 months before that.
- Only 1% of banks stated that their liquidity positions have eased (improved) in 3 mos through April 2011, the same percentage as in 3 mos through April 2011 and down from 3% in 3 months through January 2011.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxBRObfB6KzNCbEGVI44yfZwNyNVpEqLIt44ab9bok7XT2z0U75fFHxcCtdATAleU5j5AxHUAxen-2KZ5J6OEgXlNCs7zoJyA36KCfsL_qGmajCshpsc5PNZQ1NJ6ck7B-qDuHgIvqu140/s400/Screen+shot+2011-08-22+at+22.31.28.png)
- In 3 months through July 2011, 82% of the banks in the Euro area reported no change in competitive pressures from other banks, up from 79% in 3 months to April 2011, while 1% reported tightening and 8% reported easing of competition.
- The same story, but less dramatic, holds for competition from non-banks and for competition from market (non-banks) financing.
- The percentage of banks that observed tighter expectations of general economic activity in the end of July 2011 was 15%, as contrasted by just 4% that reported easing expectations.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiADRoHb2BePNypDBxPkdLbU8ZiKvr5IeXMAaTQ4dxG9p40aY_2VEPJeH5AFrDJpZd8ZABfLAAdK1n8Y-oyQrmSr0ME7vDr5uN0gxy7HilwGp-ZememUPwAPY6I5NGmD9HUeD5vuD7oe2Uy/s400/Screen+shot+2011-08-22+at+22.31.40.png)
Surely these are not the signs consistent with stable improvement or the end of the crisis?
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