Euro zone corporate business slows further

-

Economy32 minutes ago (Sep 27, 2021 04:51AM ET)

(C) Reuters. FILE PHOTO: The headquarters of the European Central Bank (ECB) in Frankfurt, Germany, March 12, 2016. REUTERS/Kai Pfaffenbach/File Photo

FRANKFURT (Reuters) – Lending to euro zone companies slowed further last month, European Central Bank data showed on Monday, extending its steady downward trend and likely raising concern among policymakers about banks’ reluctance to extend credit.

Lending growth to firms eased to 1.5% in August from 1.7% in July, even as the monthly flow of adjusted loans rose to 12.6 billion euros from 10.2 billion euros a month earlier.

Lending growth to firms stands at around half of pre-pandemic levels, as firms now enjoy relatively strong cash-flows amid the recovery and banks show some reluctance to lend further.

Lending to households meanwhile held steady at 4.2%, a 13-year high.

The annual growth rate of the M3 measure of money supply, mostly a reflection of the ECB’s copious bond purchases, increased to 7.9% from 7.6%, beating market expectations for 7.8% growth.

Euro zone corporate business slows further

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Share this article

Subscribe here

Recent posts