ECB Data Shows European Tech Funding Split: Bank Credit Tightens as VC Surges

The ECB's August 2026 credit data showed annual growth in loans to non-financial corporations easing to 4.2% from 4.4% in July, while M3 rose to 3.5% and household lending held at 3.1%. With the deposit rate at 2.50% after two 2026 hikes, bank financing pressure grows on European tech SMEs, even as VC-backed scale-ups raised roughly €3 billion in the first half.

• Corporate loan growth slowed to 4.2% in August from 4.4% in July
• ECB deposit rate now 2.50%, main refinancing rate 2.65%
• 42% of firms reported higher bank loan rates in Q2 2026
• 92% of SAFE respondents employ fewer than 250 people