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Euro zone credit growth remains brisk despite gloomy outlook
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FRANKFURT (Reuters) – Bank lending to euro zone companies held steady, maintaining the sector’s biggest borrowing binge in over a decade, despite rising interest rates and a looming recession, European Central Bank data showed on Monday.
FRANKFURT (Reuters) – Bank lending to euro zone companies held steady, maintaining the sector’s biggest borrowing binge in over a decade, despite rising interest rates and a looming recession, European Central Bank data showed on Monday.
Lending to businesses in the 19-country euro area expanded by 8.9% in October, unchanged on September when it rose to its highest rate since early 2009, fresh data showed. Household credit growth meanwhile slowed to 4.2% from 4.4%.
The monthly flow of loans to companies, however, slowed sharply, to 24.0 billion euros from 36.6 billion a month earlier with the flow of short term loans coming to a standstill.
Growth in the M3 measure of money circulating in the euro zone, meanwhile slowed to 5.1% from 6.3%, coming well under expectations for 6.2% in a Reuters survey.
(Reporting by Balazs Koranyi; Editing by Toby Chopra)
Credit growth refers to the increase in the amount of credit extended by banks to borrowers, which can indicate economic expansion or contraction.
Bank lending is the process by which banks provide loans to individuals or businesses, typically involving interest payments and repayment terms.
The European Central Bank (ECB) is the central bank for the eurozone, responsible for monetary policy and maintaining price stability within the euro area.
Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives.
Economic growth is the increase in the production of goods and services in an economy over a period, typically measured by the rise in Gross Domestic Product (GDP).
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