The weakness of demand has weighed increasingly on the recent trend in credit. Firms are cutting back on investment, given the unfavourable economic prospects, while households are cautious in the face of the uncertain trend in the housing market and the difficulties for income and employment.
But supply-side conditions that are still restrictive, though an improvement on the exceptional tensions registered in late 2011 and early 2012, also continue to be factor. In the bank lending survey conducted at the start of October for the third quarter of this year, the banks relate the tightening of supply to the poor economic situation and the consequent increase in credit risk.