The demand for credit is stronger in the Euro Area

The ECB survey shows, at the end of 2015, a new improvement on credit conditions for companies.
The first point to mention is that credit standards are still accommodative at the turn of the year. Banks are not tightening their behaviour on the credit market. Credit standards are almost at their lowest. That’s what the graph below shows. It’s not the situation encountered in 2009 and 2012. Continue reading

3 Graphs on Companies’ Demand for Credit in the Euro Area

The ECB survey on banks’ lending conditions is very instructive in October. It gives a positive signal on the funding of the Euro economy through the banking sector. Behaviors have changed in 2014 even if this is not yet transformed in real on the growth economic momentum.
A focus will be put on companies as the change in trend will come from them.
Three questions
The first in on credit demand
Companies, small or large, have a demand that is getting stronger all over 2014. To ease the reading of the chart, 0 is the historical level. We see that demand is now well above this threshold.
Credit demand is now better shaped; expectations are stronger Continue reading