- Analytics
- News and Tools
- Market News
- Eurozone bank lending remains subdued after the peak in March - ING
Eurozone bank lending remains subdued after the peak in March - ING
Bert Colijn, a Senior Economist at ING, notes that annual comparisons for both money growth and bank lending in the Eurozone are distorted by strong base effects, but recent developments provide little guidance for the economic recovery ahead.
"There have been substantial drops in M3 growth from 9.2 to 8.4% in May, with bank lending growth dropping from 7.7 to 6.7%. This is all due to the large jumps in monetary support and emergency liquidity borrowing seen during the first wave of the pandemic."
"Therefore, the monthly flows are much more relevant at the moment, which show modest relevance for the economic outlook."
"Let’s start with M3, which increased by 0.5% month-on-month in May. This is up from 0.2% in April and comparable to the pre-pandemic range seen in 2015-2019. This shows modest money growth after a year of strong expansion."
"Overall, monetary developments remain relatively stable despite plunging headline figures due to base effects. The appetite for lending among businesses remains lukewarm at the moment, despite financial conditions remaining very loose and economic prospects dramatically improving. This means the strong outlook for economic recovery is not getting much extra oomph from the lending side."
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
