Credit terms are tightening in the European securities financing and over-the-counter (OTC) derivatives markets, according to the survey results published on Monday by the European Central Bank (ECB).

Less favourable credit terms are being reported across the entire spectrum of securities financing and OTC derivatives transaction types for the three months ending in February, the survey found. The tightening of credit terms was most pronounced for counterparties which are hedge funds and non-financial corporations, the ECB says in a statement.

The results are based on responses from a panel of 28 large banks, including 14 euro area banks and 14 banks with head offices outside the euro area.

Although the non-price terms, such as the maximum amount and the maximum maturity of funding in securities financing transactions, have tightened for most types of collateral, at the same time, financing rates/spreads have declined for many types of collateral, with the decline being most pronounced for government bonds, the ECB statement says.

Looking ahead, the ECB expects credit terms in these markets to “tighten somewhat further.”

The survey is conducted four times a year and covers changes in credit terms and conditions over three-month periods ending in February, May, August and November. The latest survey collected qualitative information on changes in credit terms between December 2015 and February 2016.