Euro zone banks expect to ease credit standards for business loans and consumer credit in the second quarter but may tighten them for mortgages, the European Central Bank said in a quarterly lending survey.

"For the second quarter of 2019, banks expect an easing of credit standards for loans to enterprises and consumer credit, and a further tightening of credit standards for housing loans," the ECB added.

In the first quarter, credit standards -- banks' internal guidelines or loan approval criteria -- remained broadly unchanged for loans to enterprises while credit standards for mortgages and consumer credit tightened, the ECB added.

"Banks' cost of funds and balance sheet constraints and risk perceptions contributed to a tightening of credit standards on loans to enterprises, while competitive pressures continued to contribute to an easing of credit standards," the ECB said.