Economy Lending conditions for euro zone companies ease on ECB stimulus

Lending conditions for euro zone companies ease on ECB stimulus

European Central Bank Frankfurt
European Central Bank Frankfurt

Credit standards for euro zone companies eased more than expected in third quarter of the year as banks, awash with central bank money, competed for customers, a European Central Bank survey showed on Tuesday.

Banks said they were using additional liquidity from the ECB’s 60-billion euros a month asset-purchase programme to grant loans, providing some comfort to the ECB as it looks for evidence that its scheme is working its way into the economy despite anaemic inflation.

Companies’ demand for loans also rose, albeit less than expected, and a “further considerable increase” was expected in the last quarter of the year, the ECB’s quarterly Bank Lending Survey of the euro zone’s largest banks showed.

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