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News / 11 October 2026

ECB survey: credit terms eased slightly for a fourth consecutive quarter

11 October 2026 · Based on: European Central Bank

Credit terms and conditions eased slightly for all counterparty types for the fourth consecutive quarter, mainly through price terms.[1] The results of the September 2026 SESFOD survey are available on the ECB's website.[1]

The survey covered June to August 2026, a period of uncertainty linked to the conflict in the Middle East and volatile energy prices.[1] The ECB raised its key interest rates by 25 basis points in June and held them unchanged in July.[1] Non-price terms eased slightly for banks and dealers, tightened slightly for hedge funds and were unchanged for the other counterparty types.[1] Respondents expected a further slight overall easing for all counterparty types over the following three months.[1]

In securities financing, demand for funding secured against most collateral types increased, led by equities at a net 27% of respondents.[1] Financing rates and spreads increased for most-favoured clients across all collateral types.[1] Haircuts decreased for most bond collateral types and asset-backed securities.[1]

For non-centrally cleared OTC derivatives, initial margin requirements decreased slightly for foreign exchange, interest rate, equity and several credit derivative types.[1] The volume and the duration and persistence of valuation disputes increased for several derivative types, particularly credit derivatives.[1]

Background

The SESFOD survey is conducted four times a year, and the September 2026 round collected qualitative information on changes between June and August 2026.[1] The results are based on responses from 26 large banks, comprising 14 euro area banks and 12 banks with head offices outside the euro area.[1]

This article summarises an official publication for learning purposes. It is not investment advice and makes no forecast of prices or outcomes. Read the original source before relying on any detail.

Sources

  1. European Central Bank. Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD). Published 2026-10-07. Read the source

Checked 11 October 2026. How we check sources