Bank lending to businesses and individuals in the eurozone remains weak, with loans to companies and households contracting again in December.
The low interest cash the European Central Bank has been pumping through the monetary system is mostly staying in high street banks’ vaults or is even being repaid to the ECB.
The ECB believes that reflects weak demand for loans, rather than an unwillingness by the banks to lend.
Loans to the private sector fell 0.7 percent from the same month a year earlier, continuing a trend that has lasted for eight months.
The problem is that with overall eurozone growth weak, people do not want to risk borrowing to launch new projects or expand existing businesses.
On a country-by-country basis, the ECB figures showed a 22 billion euro drop in private-sector lending in Spain, that was the largest monthly fall since July.
In Portugal, private-sector lending fell by 2.6 billion, the biggest drop in a year.
Across the eurozone analysts do not believe an upturn is likely any time soon.
“The much more positive sentiment about the eurozone’s future that has prevailed in financial markets so far this year will probably take some time to materialise in greater credit availability and economic growth,” Oxford Economics’ analyst Marie Diron said.
- 1Putin calls for Russian businesses to fill the sanctions gap
- 2Market starts to wonder where Greece will find money to make repayments
- 3Forex manipulation further undermines trust in international banking
- 4Italy latest EU country to ban UberPop taxi app
- 5Markets rise as hopes of Greek debt deal defy mixed messages
- 1Forex manipulation further undermines trust in international banking
- 2WizzAir revamps look for 11th anniversary
- 3Putin calls for Russian businesses to fill the sanctions gap
- 4Cartier parent company, Richemont squeezed by Swiss Franc revaluation
- 5China discusses trans Amazon railway proposal with Peru and Brazil
- 1Snowden, Assange and Manning statues unveiled in Berlin | euronews, world news
- 2Chomsky says US is world’s biggest terrorist | euronews, the global conversation
- 3euronews live TV - News | euronews : the latest international news as video on demand
- 4Nepal: ‘equally big earthquakes coming in eastern regions,’ expert tells euronews | euronews, world news
- 5It’s a girl: Britain’s Duchess of Cambridge gives birth in London | euronews, world news
- 6How Nepal earthquake devastated Kathmandu’s UNESCO heritage | euronews, world news
- 7Juncker to Hungarian PM Orban: “Hello, Dictator!”
- 8Evidence of ancient wine found in Georgia a vintage quaffed some 6,000 years BC
- 9Exclusive: unrest in FYR Macedonia could hit other Balkan countries warns Serbian PM | euronews, world news
- 10International tv news | euronews: European and International tv news bulletin
- 11International breaking news | euronews online world breaking news in video
- 12Andrea Ferrari: the graphene guru | euronews, science
- 13Portuguese language reform law goes global | euronews, world news
- 14EU membership remains Serbia’s priority, says PM Aleksandar Vucic | euronews, the global conversation
- 15Spanish voters punish mainstream parties in local and regional elections
- 16Spain: the viral soldiers fighting in Madrid and Barcelona mayoral races | euronews, world news
- 17Watch: France’s Jean-Marie Le Pen clashes with UKIP MEP Woolfe | euronews, world news
- 18Recharging without cables: the road ahead for electric cars
- 19Chernobyl Children: what makes Ukrainians born in 1986 different? | euronews, world news
- 20We will not be moved! China’s urban spread resistance [PHOTOS]
Wires > Business
- 01:08 CET UK consumer confidence slips unexpectedly in May – GfK
- 01:06 CET FirstGroup to invest 78 million pounds for growth in British bus…
- 00:52 CET Analysis – Avago, Broadcom deal could put pressure on Qualcomm
- 23:37 CET Greek crisis overshadows G7 growth talks
- 21:35 CET General Electric hires Deutsche Bank to sell Italian lender…
- 20:58 CET FCA, Honda, BMW expand recalls of vehicles with Takata air bags
- 20:37 CET Vodafone investors open to Liberty deal
- 20:08 CET Avago to buy Broadcom for $37 billion in biggest-ever chip deal