Headlines
Euro zone business lending growth stalls amid uncertainty
Published by Global Banking and Finance Review
Posted on June 30, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on June 30, 2025
FRANKFURT (Reuters) -Lending growth to euro zone businesses stalled last month, suggesting that trade uncertainty and weak overall growth offset any support provided by European Central Bank rate cuts, data from the ECB suggested on Monday.
The ECB has cut rates by a combined 2 percentage points since last June, partly to prop up economic growth, but surging uncertainty from erratic U.S. trade policy has weighed on business sentiment and firms' willingness to invest.
Lending growth to non-financial firms slowed to 2.5% in May from 2.6% a month earlier, breaking an accelerating trend that has prevailed all year.
The monthly flow of fresh loans was minus 2 billion euros and while the data series is prone to volatility, this was the first negative reading in over a year.
Meanwhile, lending to households continued to accelerate, though at the slowest possible pace, to 2.0% from 1.9%.
At 12 billion euros, the monthly flow of loans to households was the lowest since last November.
The M3 measure of money circulating in the euro zone, often an indicator of future activity, meanwhile held steady at 3.9%, coming just short of expectations for 4.0% in a Reuters poll of economists.
M3 has been hovering near this level all year, supporting economist arguments that some growth remains, though it is anaemic and the outlook is dominated by uncertainty.
(Reporting by Balazs Koranyi;Editing by Alison Williams, William Maclean)