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:
- 1Podemos: Spanish indignation in Brussels’ corridors of power | euronews, reporter
- 2Israel announces it will seize 400 acres in West Bank | euronews, world news
- 3Watch: Angry mob throw Ukraine MP into rubbish bin | euronews, world news
- 4Japan sounds bluefin warning, calls for 50% catch cut | euronews, world news
- 5Hoverbike on the horizon | euronews, hi-tech
- 6China executes eight Muslims convicted of terrorism | euronews, world news
- 7New car offers freedom for disabled drivers | euronews, hi-tech
- 83D printing: a driving force in design and engineering | euronews, hi-tech
- 9Rise of the machines | euronews, futuris
- 10Ukraine accuses Russian aid convoy of stealing factory equipment | euronews, world news
- 11Iraq: Baghdad rally held against US ‘occupiers’ | euronews, world news
- 12Young Yazidi girl escapes Islamic State kidnappers | euronews, world news
- 13#ن: How an Arabic letter was reclaimed to support Iraq’s persecuted Christians | euronews, world news
- 14EU leaders name Donald Tusk European Council president | euronews, world news
- 15The business benefits of EU chemical regulation | euronews, business planet
- 16#Indyref Live: Scotland votes on independence from UK | euronews, world news
- 17Canada sends hilarious barb to Russia over Ukraine ‘incursions’ | euronews, world news
- 18Official ‘executed by flame-thrower’ over links to Kim Jong-un’s purged uncle | euronews, world news
- 19Thousands of Catalans call for choice on split from Spain | euronews, world news
- 20Iceland puts on a show as two of its volcanoes spew out lava | euronews, world news
Wires > Business
- 22:42 CET EE in talks to take over dozens of Phones 4U stores
- 20:06 CET Italy says inefficiency delays public sector debt repayments
- 19:50 CET Exclusive – Siemens near deal to buy Dresser-Rand: sources
- 16:27 CET EE in talks to take over dozens of Phones 4U stores
- 15:24 CET Air France cancels flights as strike enters second week
- 14:42 CET EE in talks to take over 60 Phones 4U stores – Sunday Times
- 14:39 CET Germany pushes Airbus for cost cuts on A400Ms – paper
- 12:39 CET Julius Baer eyes Coutts international arm, wary of bidding war