Lending to businesses in the eurozone maintained a steady pace in September, according to data released by the European Central Bank (ECB) on Tuesday. Credit to firms across the 21-member currency bloc rose by 4.2 percent year-on-year, matching the growth rate recorded in August. Meanwhile, household lending remained stable at an annual increase of 3.1 percent.

Despite the continued expansion in credit to businesses, a key ECB survey indicated a tightening of lending standards during the month, alongside a lack of growth in demand for loans. This suggests that while banks may have become more selective in extending credit, firms’ appetite for borrowing did not increase.

The broad measure of money supply in the eurozone, known as M3, also held steady, growing by 3.5 percent compared with a year earlier. This figure slightly surpassed analysts’ expectations from a Reuters poll, which forecast a 3.4 percent increase.

The data underscore a cautious but stable credit environment within the euro area as policymakers and markets monitor the impact of ongoing economic challenges, including inflationary pressures and geopolitical uncertainties. The balance between steady lending growth and tightening credit conditions highlights the complex dynamics facing the region’s financial system.