The dispersion of bank lending conditions in the euro area has increased substantially with the sovereign crisis. What is the importance of the close links between sovereign and banks during the recent credit recovery period, in the context of deepening the banking union? In this article, we examine the recent evolution of euro area bank credit according to some characteristics of the banks that are often associated with their vulnerabilities, and bearing in mind that links with their sovereign can stress such vulnerabilities. Apparently, banks perceived to be the most vulnerable seem to have experienced weaker lending developments in the private sector relative to the remaining ones. When control factors are included, the results suggest that country-specific factors, including the position in the business cycle, are relevant for the supply of credit and correlate with the degree of vulnerability of banks. The conclusions should be read with due caution, in particular conclusions on causation can not be drawn.