The European Central Bank said it will launch a survey of banks' lending policies to improve its knowledge of financing conditions in the euro zone.
"Experiences with the use of bank lending surveys by other central banks have shown that this instrument can provide important additional information for the assessment of financial and economic developments and the formulation of monetary policy," the ECB said following a non-rate setting meeting of its governing council.
The survey will cover around 90 banks and be conducted four times a year, starting in early 2003.
A questionnaire will be sent to banks covering issues such as credit standards for approving loans, and credit terms and conditions applied to enterprises and households. It will also ask for assessments of the conditions affecting credit demand.
AFP