For the first time since 2007, conditions for lending in the eurozone have eased bringing down another obstacle for recovery in the region.
According to results of the European Central Bank’s (ECB) quarterly survey on lending, more relaxed standards have been set by banks for a variety of loans during the second quarter of 2014. The report comes as good news for the monetary union which has endured seven years of crisis that led to the ECB cutting interest rates and offering cheap loans worth trillions of dollars to prevent a total collapse of its lending market. Citigroup’s Rahbari says that, “It’s the only area of the economy where conditions had failed to stabilise, and now we have some signs of a turning point.”
The responses of the 137 lenders involved in the survey indicated that there has been an increase in demand for loans from both businesses and households as well as a narrowing of the gab between the strong and weak performing members of the bloc. Italy and France led the loosening of standards while Spain, Germany, and the Netherlands maintained their current requirements.
Because of the results, analysts believe that it may keep the ECB from enacting additional unconventional measures, such as quantitative easing, to spur growth among its member countries. ECB president Mario Draghi announced earlier in June that the plant to put interest rates into the negative and also introduced a new program for cheap four year loans with a fixed rate that amounts to $1 trillion.
The material has been provided by InstaForex Company – www.instaforex.com
For the first time since 2007, conditions for lending in the eurozone have eased bringing down another obstacle for recovery in the region.
According to results of the European Central Bank’s (ECB) quarterly survey on lending, more relaxed standards have been set by banks for a variety of loans during the second quarter of 2014. The report comes as good news for the monetary union which has endured seven years of crisis that led to the ECB cutting interest rates and offering cheap loans worth trillions of dollars to prevent a total collapse of its lending market. Citigroup’s Rahbari says that, “It’s the only area of the economy where conditions had failed to stabilise, and now we have some signs of a turning point.”
The responses of the 137 lenders involved in the survey indicated that there has been an increase in demand for loans from both businesses and households as well as a narrowing of the gab between the strong and weak performing members of the bloc. Italy and France led the loosening of standards while Spain, Germany, and the Netherlands maintained their current requirements.
Because of the results, analysts believe that it may keep the ECB from enacting additional unconventional measures, such as quantitative easing, to spur growth among its member countries. ECB president Mario Draghi announced earlier in June that the plant to put interest rates into the negative and also introduced a new program for cheap four year loans with a fixed rate that amounts to $1 trillion.
The material has been provided by InstaForex Company – www.instaforex.com
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