Fewer banks expect to continue tightening their lending to companies in the second quarter than in the first three months of the year, suggesting the market has reached a turning point in terms of sentiment, according to the latest European Central Bank survey of bank lending.

Of the respondents to the quarterly survey, which collected responses in March and April, 49% said they had tightened credit standards for lending to companies in the first quarter, with net tightening increasing more for large than for small and medium-sized companies, which was up from 41% in the fourth quarter of last year.