ECB survey finds easier wholesale credit terms, with financing costs mixed

Overall terms and

terms eased slightly for the fourth consecutive survey period in the ECB’s June–August 2026 survey. Pricing accounted for most of the overall easing, according to the October 7 release.

The SESFOD survey draws on 26 banks: 14 in the euro area and 12 outside the EU. They give qualitative assessments of relationships among institutions and other market participants.

Non-price conditions eased for banks and dealers, tightened for and were broadly unchanged for other . Some respondents cited market , competition and stronger as influences. They expected further easing during the following quarter, while leverage rose slightly.

The ECB raised policy rates by 25 in June and left them unchanged in July. terms also reflect the , and instrument involved in each relationship.

and

Demand for rose across most categories, with equities showing the strongest increase. The equity result of 27 per cent is the net share of responding banks reporting higher demand.

Financing rates and spreads increased for favoured clients across types. For average clients, changes were more limited for government bonds and . These particular pricing results coexist with the survey’s broader account of modest overall easing across relationships.

declined for most bonds and . A discounts ’s market value when determining how much financing it can support; a smaller can make more of that value usable, other conditions being equal. The survey also reports increases in maximum financing amounts or maturities in some categories.

Market and trading conditions deteriorated in equities and corporate bonds, while disputes were broadly unchanged.

declined for foreign exchange, , equities and some credit instruments in . is supplied against potential exposure when a position is established; the survey reported broadly unchanged exposures and maturities alongside the margin movement.

worsened for equity and commodity and improved for sovereign-credit . Valuation disputes increased in foreign-exchange and credit , while terms for new or renewed eased slightly.

What the sources support

Reports from the same original source are not independent confirmation.

Claims and evidence

Passages come from the stored source packet. Original factual notes are not quotations from the publisher’s report.

The ECB’s October 7, 2026 SESFOD survey covers June–August and responses from 26 banks, 14 in the euro area and 12 outside the EU; it reports qualitative conditions, not household borrowing rates.

The ECB’s October 7, 2026 SESFOD survey covers June–August and responses from 26 banks, 14 in the euro area and 12 outside the EU; it reports qualitative wholesale financing conditions, not household borrowing rates.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

Overall credit terms eased slightly for the fourth consecutive survey period, largely through pricing; non-price terms eased for banks and dealers but tightened for and were broadly unchanged for other .

Overall credit terms eased slightly for the fourth consecutive survey period, largely through pricing; non-price terms eased for banks and dealers but tightened for hedge funds and were broadly unchanged for other counterparties.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

Some respondents cited market , competition and stronger . They expected further easing next quarter; leverage increased slightly. These are respondent observations and expectations.

Some respondents cited market liquidity, competition and stronger counterparties. They expected further easing next quarter; hedge-fund leverage increased slightly. These are respondent observations and expectations.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

demand increased for most types, especially equities, for which 27 per cent was the net share of respondents reporting increased demand, not a 27 per cent rise in transaction volume.

Securities-financing demand increased for most collateral types, especially equities, for which 27 per cent was the net share of respondents reporting increased demand, not a 27 per cent rise in transaction volume.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

Financing rates and spreads increased for favoured clients across types; changes for average clients were more limited in government bonds and . declined for most bonds and , and maximum financing amounts or maturities increased in some categories.

Financing rates and spreads increased for favoured clients across collateral types; changes for average clients were more limited in government bonds and convertibles. Haircuts declined for most bonds and asset-backed securities, and maximum financing amounts or maturities increased in some categories.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

and trading conditions worsened in equities and corporate bonds, while disputes were broadly unchanged.

Liquidity and trading conditions worsened in equities and corporate bonds, while collateral disputes were broadly unchanged.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

For , declined for foreign exchange, rates, equities and some credit instruments, while exposures and maturities were broadly unchanged. worsened in equity and commodity and improved in ; valuation disputes increased in foreign-exchange and credit , and master-agreement terms eased slightly.

For non-cleared OTC derivatives, initial margins declined for foreign exchange, rates, equities and some credit instruments, while exposures and maturities were broadly unchanged. Liquidity worsened in equity and commodity derivatives and improved in sovereign credit derivatives; valuation disputes increased in foreign-exchange and credit derivatives, and master-agreement terms eased slightly.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

The ECB had raised rates by 25 in June and left them unchanged in July. Those policy decisions are background to the survey, rather than the survey’s own measure of financing terms.

The ECB had raised rates by 25 basis points in June and left them unchanged in July. Those policy decisions are background to the survey, rather than the survey’s own measure of financing terms.

European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

Still unknown

The survey does not establish household borrowing conditions or a uniform change for every .

ECB survey finds easier wholesale credit terms, with financing costs mixed

The short version

Overall terms and

and

Original sources

The short version

Overall terms and counterparties

Securities financing and collateral

Non-cleared derivatives

Original sources

Overall terms and

and