Banks tighten lending rules in euro zone

Frankfurt: Euro zone banks are making it harder for companies and households to borrow money as they clamp down on lending after the crisis triggered by US subprime debt, the European Central Bank said on Friday.

"The results of the April 2008 bank lending survey indicate a further increase in the net tightening of credit standards... with net tightening increasing more for large than for small and medium-sized enterprises," the ECB said.

"Banks also reported a further increase in the net tightening of credit standards for loans to households for house purchase," the ECB added in the April edition of its quarterly bank lending survey.

Since the start of the global credit crisis last summer, banks have found it harder to obtain funds to lend on to firms and consumers, and also have become more cautious about whom they lend to -- trends which persisted in early 2008.

"Banks reported that their access to wholesale funding had deteriorated over the past three months, especially as regards securitisation activity," the ECB said.