Euro-zone banks tightened credit standards again in the second quarter of the year and expect to continue tightening in the coming months, but at a slower pace, according to the European Central Bank (ECB).

The EBC believe that banks saw a slowdown in demand for loans from firms in the second quarter, but expect a small pickup in the third quarter. Credit standards for housing loans were also tightened by banks as demand for loans turned positive, the ECB data showed.

A further tightening in standards is expected in the third quarter but at a slower pace. Demand for housing loans is expected to return to negative territory. Below is a table showing the net percentage of banks reporting and expecting changes to credit standards and loan demand in the ECB survey.