Austrian firms’ loan demand has been gradually rising since the third quarter of 2025 as economic growth is slowly gathering pace. The turnaround in loan demand marked the end of a three-year decline amid a protracted period of economic weakness.

The current increase in loan demand is attributable to three reasons: 1) increased financing needs for inventories and working capital, 2) lower interest rates and 3) a trend reversal in corporate investment activity.

The survey also shows that there are two notable exceptions to the general trend: energy-intensive industrial firms and firms in the automotive industry, including suppliers; in these segments, loan demand continued to decline in the second half of 2025. This reflects the specific problems in these industries: high energy prices and the structural weakness of the European automotive sector.

Banks have been tightening their lending policies due to heightened risks since 2022. For firms, taking out loans has become more difficult. This concerns, in particular, the real estate sector, with commercial real estate firms having been more severely affected than residential real estate firms.

By contrast, demand for housing loans has been rising for two years, mainly because of lower interest rates.

Note: The full report in German can be found at OeNB Reports .