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.
- 1Kazakhstan’s currency plunges after central bank abandons USD peg
- 2China’s ‘Black Monday’ a symptom of wider malaise in the world’s second largest economy
- 3Chinese problems lead to plunging markets
- 4European shares tumble as China panics investors
- 5The currency war intensifies after China devalues the yuan
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International breaking news | euronews online world breaking news in video
- 3Caught red-handed: the Russian Major fighting in Ukraine
- 4International news | euronews, latest international news
- 5Video footage shows massive explosion in Tianjin, China
- 6Ukraine puts top Russian general Gerasimov on ‘most wanted’ list
- 7Latest News Bulletin
- 8Why World Elephant Day matters
- 9Who came out top in the US Republican television debate?
- 10UK: at least 7 dead after plane crashes into road in Brighton
- 11Snowden, Assange and Manning statues unveiled in Berlin
- 12Virginia:TV journalist and cameraman shot dead live on air
- 13ISIL militant group claims to have killed Croatian hostage in Egypt
- 14Earth Overshoot Day…Pushing Mother Nature too far
- 15Windows 10, three weeks on: the good, the bad and the ugly
- 16Bringing the trolls out of the dark: Russian ‘troll’ awarded 1 rouble damages
- 17As ‘Daily Show’ Jon Stewart’s tenure ends, scholars say goodbye to their research topic
- 18Momentum for Mars: Astronauts say mission is inevitable
- 19Migrant crisis pushing Greek island of Kos to the limit
- 20Who are the six EU countries with shortest memories on migration?
Wires > Business
- 01:42 CET Exclusive – Carlyle looks to sell Landmark Aviation for $1.7…
- 00:52 CET Fed says rate hike next month hinges on market volatility
- 00:12 CET To regulate or not to regulate? EU to launch study on Uber
- 22:43 CET Rebekah Brooks returning to News Corp as UK chief – FT
- 19:58 CET Carmakers scramble to adapt to slowing Chinese demand
- 19:29 CET Britain’s economic growth accelerates in second quarter, helped by…
- 19:21 CET Ashley Madison parent CEO quits after huge infidelity data hack
- 18:30 CET Moody’s cuts 2016 global growth forecasts