Bank lending survey 2026: what the Q3 results show

The Bank Lending Survey published on 27 October 2026 shows that Spanish banks kept their credit standards for lending to companies stable in the third quarter, but made loans more expensive, and demand for credit fell. It is a nuanced picture: credit has not dried up, but it costs more and fewer borrowers are asking for it. For a private investor, the question is what this means for alternative finance. This article is for information only and is not investment advice.

What the third-quarter 2026 survey says

The survey ran from 21 September to 6 October 2026. The Banco de España (Spain’s central bank) summarises the answers from Spanish banks as follows:

• Credit standards: stable for companies and for home purchase; slightly tighter for consumer and other lending.
• Terms and conditions: more restrictive across all three segments, because banks passed higher interest rates on to borrowers.
• Demand: down in all three segments, most sharply for home purchase.
• Companies: the fall in demand came only from small and medium-sized firms and was concentrated in long-term loans; large companies asked for slightly more.
• Fourth quarter: banks expect to tighten standards moderately for households, keep them unchanged for companies and see further falls in demand.

The difference between standards and conditions matters. Standards are the internal rules a bank uses to decide whether to lend. Conditions are the features of a loan once it has been approved: rate, amount, term and collateral. If standards do not change but the rate rises, credit is still available, just at a higher price.

Euro area: the ECB figures

On the same day the ECB published results for the euro area as a whole. They are expressed as net percentages: banks that tighten (or see more demand) minus banks that ease (or see less demand). They show direction, not the size of the fall in lending.

For standards, a positive value means net tightening. For demand, a negative value means a net decline. Across the euro area, tightening for companies was somewhat greater than in Spain, where standards stayed unchanged. Among the reasons for weaker corporate demand, the ECB cites the level of interest rates, weak SME investment and a shift towards alternative sources of finance.

Trends: what is happening worldwide and in Spain

• Euro area, 27 October 2026. The ECB reports net tightening of 9% for corporate credit and falling housing-loan demand (-27%). Source: ECB, Bank Lending Survey.
• Spain, 27 October 2026. Stable standards, tougher conditions and weaker demand, above all for housing. Source: Banco de España press release.
• Spain, 30 October 2026. The flash estimate from INE (Spain’s statistics office) puts annual CPI inflation at 4.9% and core inflation at 3.1%. It is a provisional figure. Source: INE.
• Euro area, 29 October 2026. The ECB left its deposit facility rate at 2.50% and did not commit to a rate path. We analyse it in ECB holds rates at 2.50%.

What this means for a private investor in Spain: with high inflation and high rates, borrowing costs more and idle savings lose purchasing power. That combination pushes companies and developers to look for alternatives, but it also raises the risk that borrowers default. More potential demand for financing does not mean better deals.

What it may mean for alternative finance

When banks make credit more expensive and more demanding, part of the demand looks for non-bank finance. That link is possible, not automatic. In this cycle, three points deserve attention:

• There is no general credit squeeze. In Spain, standards for companies did not tighten. What changed was the price.
• Demand is falling too. Fewer SMEs are asking for long-term credit, which reduces the potential volume of deals.
• Large companies stay with the banks. Their demand rose slightly, and banks compete hard for them.

Alternative finance tends to fit transactions that banks do not cover well because of term, speed or structure: early project phases, one-off liquidity needs, or property collateral with a clear exit plan. See how this works in alternative development loans in Spain and alternative finance in residential development.

Risks to consider

• Default risk. With high rates, the borrower carries a heavier financing cost.
• Adverse selection. Some transactions that reach an alternative lender were already turned down by a bank. That is why deal-by-deal analysis matters.
• Illiquidity and term. Capital is tied up until maturity, and the term can be extended.
• Collateral value. Property collateral mitigates risk but does not remove it: the property can lose value.
• Reading the survey. It reflects the aggregate opinion of banks, changes every quarter and the October figures may be revised.

Every investment carries risk, including partial or total loss of capital.

How Ondara Group works

Ondara Group is an alternative investment manager based in Barcelona, active since 2018. It structures private debt transactions backed by real estate, analyses each transaction individually, looks for real assets as collateral and promotes diversification across transactions. Investors deal directly with the management team and the minimum investment is EUR 25,000. We aim for target double-digit returns, which are a target and are never guaranteed. Learn about the team and our brands. On how bank credit records differ from alternative lending, see alternative lending and CIRBE in Spain.

Frequently asked questions

What is the Bank Lending Survey?

It is a quarterly survey of banks on lending standards, terms and credit demand. In Spain it is coordinated by the Banco de España, and the ECB publishes the euro area totals.

Is there a credit squeeze in Spain?

In the third-quarter 2026 edition, standards for companies and housing were stable, but terms were tougher because of higher rates. That is not the same as credit being shut off.

What does a net percentage mean?

It is the difference between the share of banks that tighten and the share that ease. It shows direction, not volume.

Does less bank credit help private debt?

Not necessarily. There may be more requests to alternative lenders, but also more risk. Each transaction must be analysed separately.

When is the next survey?

The Banco de España expects to publish the fourth-quarter 2026 results on 2 February 2027.

In summary

• In Spain, credit standards for companies were stable in the third quarter of 2026, but terms were more restrictive.
• Demand fell in all three segments, more for housing, and among companies only SMEs reduced it.
• In the euro area, the ECB puts net tightening for companies at 9%.
• With CPI at 4.9% and high rates, borrowing costs more and default risk may rise.
• Property collateral mitigates risk but does not remove it.

See how we analyse each transaction

If you would like to know how we invest, register as an investor and we will explain how it works. The minimum investment is EUR 25,000.

This article is for information purposes only and does not constitute an investment recommendation or financial advice. All investments carry risks, including the possible loss of the capital invested, and past or target returns do not guarantee future returns. Analyse each opportunity with a professional before investing.