ECB survey showed that euro zone companies unexpectedly cut their credit applications for the first time in six years last quarter.

Highlights of the euro area bank lending survey:

• Credit standards (i.e. banks' internal guidelines or loan approval criteria) for loans to enterprises and loans to households for house purchase remained broadly unchanged in the fourth quarter of 2019. For loans to enterprises, this was in spite of a continued tightening impact stemming from risk perceptions relating to the economic outlook.

• Meanwhile, credit standards for consumer credit continued to tighten.

• Demand for loans to enterprises declined for the first time since the fourth quarter of 2013, reflecting the slowdown in economic activity that has been observed since 2018.

• In contrast, demand for housing loans and consumer credit continued to increase.