Fewer eurozone banks tightened lending conditions in the second quarter than in the first as better financial market conditions appeared to ease the flow of funds to financial institutions, a survey by the European Central Bank said. But more lending officers of the 112 banks polled cited worries about economic woes - rather than market turbulence - as a reason for stricter credit standards, while a growing number said that rules would tighten further in the next months.

The ECB said the most important factor in tightening credit rules in the past quarter "continued to be a deterioration in expectations about the economic outlook".