Irish businesses and households are finding it increasingly difficult to access credit, with households being particularly squeezed, according to new figures from the European Central Bank, (ECB), writes Suzanne Lynch

The latest Euro Area Bank Lending Survey shows that Irish banks tightened the credit standards they apply to both business and individual customers in the first quarter of 2010.

While businesses continued to see the credit situation tightening quarter on quarter, Irish householders experienced steeper lending restrictions in relative terms.

The previous Euro Area Bank Lending Survey had shown some signs that the credit situation for householders was stabilising. The January 2010 survey found that credit standards for lending to households remained unchanged in the third quarter of 2009 – the first time since the fourth quarter of 2007 that credit standards for household loans had not tightened quarter-on-quarter.

Yesterday’s survey shows that this stabilisation has not been maintained, with credit standards for personal lending once more being raised in the first three months of 2010.

Five Irish banks participated in the survey which is conducted on a quarterly basis.