FRANKFURT (Reuters) -Euro zone banks unexpectedly tightened access to corporate credit in the third quarter, with German lenders leading the way on fears over the economic outlook and tariffs, the European Central Bank said based on a quarterly survey.

Lending growth has been inching up for most of this year as the ECB’s two percentage points of rate cuts have fuelled some demand, but credit expansion is still moderate at best as tariff-induced uncertainty weighs on economic growth.

“Perceived risks to the economic outlook contributed to tighter credit standards,” the ECB said on Tuesday based on a survey of 154 of the bloc’s biggest banks.

“Banks also cited the current high level of geopolitical uncertainty and trade risks as reasons for discriminating across sectors or firms when issu

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