The latest survey on lending from the Central Bank reveals that credit standards tightened on business loans.
This was the first change recorded since the first quarter of 2010.
The survey also showed that demand from businesses for loans declined again in the first quarter of 2012.
On mortgage lending, the survey also shows that credit standards were tightened while demand for home loans fell in the first quarter of the year.
However, the Central Bank said that credit standards and loan demand were unchanged in respect of consumer credit and credit lending.
The bank said that increased levels of risk perception and lower expectations for economic activity were impacting credit standards, while an increase in the cost of funding and balance sheet restraints were also reported.
The Central Bank predicted that credit standards will continue to tighten on mortgages in the second quarter of this year, while they will remain unchanged in respect of consumer credit and other lending. It also predicts that loan demand from businesses will fall while credit standards will not change.
The survey covers five financial institutions in Ireland and is included in a euro wide survey, which covers over 100 banks. The Central Bank says the survey provides information on the willingness of banks to lend, changes in their credit standards and terms and conditions applied to loans and lines of credit.