Finance
Euro zone corporate lending growth slows in December
Published by Global Banking and Finance Review
Posted on January 29, 2026
1 min readLast updated: January 29, 2026
Quick Summary
Euro zone corporate lending growth slowed to 3.0% in December, while household lending rose to 3.0%, indicating modest economic expansion.
Euro zone corporate lending growth slows in December
Analysis of Euro Zone Lending Trends
FRANKFURT, Jan 29 (Reuters) - Lending growth to euro zone firms stalled last month but household lending kept inching up, European Central Bank data showed on Thursday, backing the views of economists that the currency bloc's expansion is modest, even if quite steady.
Corporate Lending Growth
Credit growth to businesses slowed to 3.0% in December, from 3.1% a month earlier, while loan growth to households accelerated to 3.0% from 2.9% to hit its highest level since early 2023.
Household Lending Trends
The M3 measure of money circulating in the euro zone, often an indicator of future activity, slowed to 2.8% from 3.0%, coming below expectations for 3.0% growth in a Reuters poll of analysts.
M3 Money Supply Insights
(Reporting by Balazs Koranyi; Editing by Alex Richardson)
Key Takeaways
- •Corporate lending growth in the euro zone slowed to 3.0% in December.
- •Household lending increased to 3.0%, the highest since early 2023.
- •The M3 money supply growth slowed to 2.8%, below expectations.
- •Economists view the euro zone's economic expansion as modest.
- •ECB data supports steady but slow economic growth in the euro zone.
Frequently Asked Questions about Euro zone corporate lending growth slows in December
1What is corporate lending?
Corporate lending refers to the process where banks or financial institutions provide loans to businesses for various purposes, such as expansion, operational costs, or capital investments.
2What is household lending?
Household lending involves loans provided to individuals or families for personal use, including mortgages, personal loans, and credit cards, aimed at supporting their financial needs.
3What is the M3 money supply?
The M3 money supply is a measure of the total amount of money in circulation within an economy, including cash, checking deposits, and easily convertible near money.
4What is credit growth?
Credit growth refers to the increase in the amount of credit extended by financial institutions to borrowers, which can indicate economic expansion or contraction.
5What is monetary policy?
Monetary policy is the process by which a central bank manages the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
