Since May 2015, bank lending in the eurozone has been growing month after month. However, this growth remains fairly modest and uneven. The latest figures available on the European Central Bank (ECB) website show that in February 2016, bank lending grew by 1.1% in the eurozone (year-on-year). It was growth in lending to households (+2.1% YoY) that drove credit growth, rather than growth in lending to businesses, which has been negative for two months (-0.1% YoY). The so-called peripheral countries (Spain, Portugal, Greece, and Ireland) continue to be affected by this situation, but with a less significant decline in credit than in previous years, particularly in Spain and Portugal. Belgium, France, and to a lesser extent Germany, on the other hand, seem to be regaining positive momentum in bank lending. The transmission of low interest rates (as part of the ECB’s monetary policy, especially QE) to all interest rates, as well as the new TLTRO operation planned for June, suggest an increase in bank lending in 2016, both in terms of supply and demand.
V.L
