Loan Demand Growth Stalls Among Eurozone Businesses

Demand for loans among eurozone businesses was flat the beginning of 2019 despite record-low interest rates, increasing pressure on the European Central Bank to take further action to bolster the bloc’s economy, the Financial Times reported. Data from the ECB on Tuesday indicated the expansion in loan requests that began in mid-2015 had ended, with the percentage of banks reporting an increase in demand for loans to businesses in the previous quarter falling to 0 per cent. This was down from 9 per cent at the end of last year and double digit percentages over most of the previous three years, according to the central bank’s Bank Lending Survey. “The latest ECB Bank Lending Survey suggests that economic growth will remain weak,” said Jack Allen, economist at Capital Economics. Business loan demand increased in Germany and the Netherlands, but declined in Italy and Spain. Read more

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