The euro area bank lending survey shows that credit tightening continues and that the pace of tightening has increased for enterprises while it is unchanged for households.
Banks expect credit tightening to both households and enterprises to continue at this pace in the fourth quarter. This is an important headwind - in particular in southern Europe.
The continued credit tightening despite bold initiatives from the ECB increases the likelihood that euro area GDP growth will be in negative territory in the fourth quarter.
The degree of credit tightening varies significantly from country to country. In Germany, credit standards are broadly unchanged, while Italian enterprises continue to face substantial credit tightening.
The ongoing net decline in demand for loans to households for house purchase accelerated slightly in the third quarter of 2012. The negative impact of housing market prospects on demand appears to have declined significantly.
Banks expect a continued net decline in the demand for loans, both for enterprises and households in Q4.
Banks reported an improvement in their access to retail and wholesale funding across all funding categories. Banks expect funding conditions to improve further in the fourth quarter. Banks indicated a considerable moderation in the impact of sovereign debt tensions on banks' funding conditions.
To Read the Entire Report Please Click on the pdf File Below.
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Flash Comment: Euro Area Credit Tightening
Published 11/01/2012, 01:35 AM
Updated 05/14/2017, 06:45 AM
Flash Comment: Euro Area Credit Tightening
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