Approximately one fifth of banks across the euro zone expect companies to approach them for more credit as the year draws to a close, with those in Germany and France most optimistic, the European Central Bank said yesterday.

In its closely-watched survey of lending, the ECB asks banks whether they plan to make it easier for companies and households to borrow as well as how much demand they expect.

While the cost of bank loans has discouraged many companies, especially those in Greece or Ireland, for example, from borrowing, modest demand also reflects low confidence, as a conflict with Russia over Ukraine adds to the gloomy outlook.

While most banks have not been changing their credit standards for companies that want to borrow, the ECB survey of more than 130 banks found that there was a slight positive tendency to do so.

Of those banks surveyed, a net 17 percent expected demand for credit from companies to improve over the coming three months.

Meanwhile, the Central Bank of Ireland said credit standards were unchanged across all categories of enterprise borrowing during the third quarter of 2014.

The Central Bank said credit standards eased marginally with regard to loans for house purchases during the third quarter, while standards on consumer credit and other household lending remained unchanged.

Loan demand increased in respect of loans to households for house purchases and for consumer lending.

Reuters