Banks Tighten Lending as Interest Rates Rise, Economic Outlook Dims

Credit standards tightened further across all loan categories, more than banks had expected

Demand for loans continued to decrease strongly due to higher interest rates and economic outlook

Ongoing central bank balance sheet reduction contributing to tighter lending conditions

Positive impact of policy rate hikes on net interest margins expected to gradually abate

Access to funding deteriorated, especially retail funding, due to competition for liquidity