A survey carried out by the Central Bank has indicated that the climate for lending by Irish banks was 'more restrictive' in the third quarter of this year, as banks found it more difficult to secure access to funds on international markets.
The survey said banks expected this situation to deteriorate further in the final three months of the year.
It showed that demand for loans from business increased marginally, but demand from households for mortgage loans was down marginally. Demand for other types of consumer lending was unchanged.
The survey found that credit standards demanded by banks were little changed from the previous quarter, when banks had tightened standards. Tighter lending standards usually mean higher interest rates, or more restrictive terms and conditions for loans.
The Irish survey feeds into a euro zone survey compiled by the European Central Bank. Its survey last week indicated that the flow of lending to small and medium-sized businesses improved in the third quarter.
