Teunis Brosens, the Head Economist at ING, notes that net lending to businesses remains weak in Eurozone, but this is largely TLTRO-related, and may improve in the months ahead.
"In July, the eurozone M3 money measure increased by €89bn (seasonally adjusted), which is well above the pre-pandemic monthly average, but nothing special since March last year. The main driver continues to be the European Central Bank's asset purchase programme, as it has been since March 2020. In net terms, governments (indirectly, as the ECB only buys on secondary markets) borrowed €79bn from the Eurosystem in June, leading to the equivalent sum in money creation."
"Turning to bank lending, net bank lending to eurozone households remains strong; in fact June net lending surpassed €25bn, registering the highest monthly increase since September 2007. Low interest rates and returning consumer confidence are contributing to buoyant housing markets and mortgage demand in many eurozone countries."
"This also means that banks need not worry too much about their TLTRO lending benchmarks just yet. The “additional special reference period”, measuring borrowing to businesses and non-mortgage borrowing to households, runs until December (and then determines the TLTRO rate received by banks from June this year until June '22."
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
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 email@example.com.