Private sector credit growth rebounds, say ECB figures

Growth in lending by banks in the eurozone to the private sector rebounded in February, according to figures released yesterday by the European Central Bank (ECB). Loans to non-financial corporations and European households rose by 3.2 per cent in February

after 3.0 per cent in January and 3.4 per cent in December. The growth of loans granted to industrial and commercial companies accelerated to 3.7 per cent on February 2018's figure, against 3.4 per cent year-on-year in January.

The growth of 3.3 per cent for loans to households was up a tenth of a point on January's figures. M3, the measure of money supply used by the ECB as a leading indicator of inflation, rose 4.3 per cent after 3.8 per cent in January.

The ECB will continue to monitor "how banks can maintain healthy income conditions while net interest margins are compressed", ECB chairman Mario Draghi said in a speech Wednesday.

The monetary institute decided in early March to postpone until 2020 raising interest rates, currently at historic lows, to bring inflation back to a goal close to two per cent.

 

Private sector credit growth rebounds, say ECB figures

Growth in lending by banks in the eurozone to the private sector rebounded in February, according to figures released yesterday by the European Central Bank (ECB). Loans to non-financial corporations and European households rose by 3.2 per cent in February after 3.0 per cent in January and 3.4 per cent in December. The growth of loans granted to industrial and commercial companies accelerated to 3.7 per cent on February 2018s figure, against 3.4 per cent year-on-year in January. The growth of 3.3 per cent for loans to households was up a tenth of a point on Januarys figures. M3, the measure of money supply used by the ECB as a leading indicator of inflation, rose 4.3 per cent after 3.8 per cent in January. The ECB will continue to monitor how banks can maintain healthy income conditions while net interest margins are compressed, ECB chairman Mario Draghi said in a speech Wednesday. The monetary institute decided in early March to postpone until 2020 raising interest rates, currently at historic lows, to bring inflation back to a goal close to two per cent.