Many eurozone businesses are still not getting the loans they need to expand – despite ultra-low interest rates – hobbling the region’s economic recovery.
Newly released figures show that lending to companies contracted at the fastest pace on record in November.
Banks remain reluctant to take on new risk and instead are trying to reduce their loan commitments.
The data put pressure on the European Central Bank to do more to revive the currency bloc’s economy.
It has cut interest rates to a record low and pumped extra liquidity into the banking system.
The biggest decline was in Spain, where loans made to firms were down 13.5 percent on the same month a year earlier.
Just five eurozone countries saw corporate lending grow in November, with France the only large economy among them.
One factor which could have made banks more hesitant to lend is a bank asset-quality review – health checks – the ECB will conduct this year.
Before the ECB starts supervising banks from November next year, it will run a series of tests on the eurozone’s largest lenders to uncover potential balance-sheet risks and capital shortfalls.
The asset-quality review is based on banks’ balance sheet at the end of 2013. ECB policymakers have admitted that could have crimped lending in the last months of last year.
Copyright © 2014 euronewsMore about:
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Sweden becomes first EU country to recognise the Palestinian State | euronews, world news
- 3Italy swamped by flash floods | euronews, world news
- 4Back to School for Romania’s new First Lady | euronews, world news
- 5What will you ask US Senator John McCain? | euronews, world news
- 6Turkish president Erdogan unveils his new palace of a thousand rooms | euronews, world news
- 7India PM Modi appoints Yoga minister | euronews, world news
- 8Vladimir Putin most powerful man in the world – Forbes | euronews, world news
- 9[Live] Rosetta’s Philae lands on comet 67P and enters the history books | euronews, world news
- 10European e-revolution people rise up | euronews, world news
- 11International tv news | euronews: European and International tv news bulletin
- 12Where is the best place in Europe for women? | euronews, world news
- 13Irony as organised crime prosecutor arrested for corruption in Romania | euronews, world news
- 14Obama’s ‘risky’ immigration gamble | euronews, world news
- 15Nadia Comaneci: gymnast of perfection and defector | euronews, the global conversation
- 16Putin plans to leave G20 talks early amid Ukraine pressure | euronews, world news
- 17Transcript of hanged Iranian woman’s final message released | euronews, world news
- 18Syria: Islamic extremists pledge to press ahead with battle for Kobani | euronews, world news
- 19Edgars Rinkevics: “I am gay. Good luck all of you.” | euronews, world news
- 20Anti-immigration protests in Rome | euronews, world news
Wires > Business
- 04:37 CET Asia shares climb on U.S. optimism, oil pressured before OPEC
- 03:30 CET Samsung Group sells shares in chemical, defence arms for $1.7…
- 01:59 CET Goldman, BASF, HSBC accused of metals price fixing – U.S. lawsuit
- 01:52 CET Asia shares climb on U.S. optimism, oil pressured before OPEC
- 01:41 CET Asia shares climb on U.S. optimism, oil pressured before OPEC
- 01:07 CET British banks’ rotten culture will take generation to fix – think…
- 01:03 CET British banks’ rotten culture will take generation to fix – think…
- 00:15 CET Justice Department investigating alleged HSBC leak to hedge fund -…