CHART OF THE WEEK
An ECB study of 141 Eurozone banks shows that despite turbulent financial markets, the rebound in credit has continued through the first quarter of 2016.
Banks reported an easing of lending conditions for both corporate and consumer credit as well as greater demand for loans. Only mortgage conditions have tightened, due to a European Directive requiring a heightened assessment of clients’ credit worthiness. In the report, banks’ forecasts suggest the credit improvement is set to continue.
Our Analysis
The easing of lending conditions together with higher demand for loans and the measures the ECB announced in March should boost the upturn in credit, which we believe is one of the key elements in the Eurozone’s economic recovery.
The opinion expressed above is dated April 22nd, 2016 and is liable to change.
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