WIFO-Konjunkturtest

Credit Conditions of Austrian Companies

In November 2022, the credit hurdle – defined as the balance of the share of companies that describe bank lending as accommodating (positive values) and the share of companies that describe bank lending as restrictive (negative values) – deteriorated significantly compared to the previous quarter (–8.3 points) and, at –18.6 points, was in ranges last reached in autumn 2014. The assessments by company size show high increases, but also clear differences: the credit hurdle is higher for smaller companies (up to 50 employees) (–21.3 points) than for medium-sized companies (50 to 250 employees: –16.3 points) and larger companies (more than 250 employees: –9.6 points).
The survey results also show an increase in the demand for credit (+2.6 percentage points compared to the previous quarter), but in the aggregate (excluding the retail sector) the figure of 19.4% remains below the long-term average (20.8%). In the construction industry 21.6% of the companies reported a need for credit, in the manufacturing sector 19.4%, in the service sector 19.2% and in the retail sector 18.0%. By company size (excluding the retail sector), 18.8% of smaller companies (up to 50 employees) recently reported a need for credit, 21.3% of medium-sized companies and 24.2% of larger companies (more than 250 employees).
Of the companies with credit needs (excluding the retail sector), around 44.4% had to cut back on the amount or conditions compared to their expectations. This figure is far above the average of the past five years (18.4%). About 29.7% of the companies with credit needs were able to obtain it as expected (5-year average: 62%). Somewhat above average, at 24.3%, was the share of those companies with credit needs that did not obtain a loan or had not applied for one (about 4% of all companies surveyed; 5-year average: 19.6%) because the loan application was rejected by the bank (4.4%), the conditions were not acceptable (8.1%) or they had not attempted to obtain a loan due to lack of opportunities (11.8%).