ECB says credit terms eased again in September 2026 SESFOD survey

• Credit terms eased for a fourth consecutive quarter, mainly through price terms.
• Demand for securities financing rose for equities and most other collateral types.
• Initial margins fell slightly for several non-centrally cleared OTC derivative types.

Credit terms

The European Central Bank said overall credit terms and conditions eased slightly for all counterparty types in the June-to-August 2026 review period. It said the change was mainly in price terms.

ECB says credit terms eased again in September 2026 SESFOD survey

The ECB said non-price terms eased slightly for banks and dealers, tightened slightly for hedge funds and were unchanged for the other counterparty types.

Respondents expected a further slight overall easing for all counterparty types over the following three months.

Securities financing

For securities financing transactions, demand for funding secured against most collateral types increased, led by equities. The ECB said financing rates and spreads increased for most-favoured clients across all collateral types.

For average clients, the increases were limited to domestic government bonds, other government bonds and convertible securities. Haircuts decreased for most bond collateral types and asset-backed securities.

The use of central counterparties showed small and mixed changes. Liquidity and market functioning deteriorated slightly for equities and several corporate bond types.

OTC derivatives

In non-centrally cleared OTC derivatives, initial margin requirements decreased slightly for foreign exchange, interest rate, equity and several credit derivative types.

The ECB said maximum exposures and trade maturities were broadly unchanged. Liquidity and trading deteriorated for equity and commodity derivatives but improved slightly for credit derivatives referencing sovereigns.

The volume and the duration and persistence of valuation disputes increased for several derivative types, particularly credit derivatives. Terms in new or renegotiated master agreements eased slightly in some areas, while the posting of non-standard collateral remained unchanged.