ecb eurozone banks more reluctant to lend
Last Updated : GMT 16:51:25
Arab Today, arab today
Arab Today, arab today

ECB :Eurozone banks more reluctant to lend

Arab Today, arab today

Arab Today, arab today ECB :Eurozone banks more reluctant to lend

Frankfurt - AFP

Eurozone banks are tightening lending conditions for both businesses and households even as demand falls and the sovereign debt crisis drags on, the European Central Bank found on Wednesday. In its latest quarterly Bank Lending Survey, the ECB said that a quarter of banks expect to tighten the criteria that businesses must meet to take out loans in the first quarter of the year. Almost as many banks said they would also tighten conditions for loans to households for house purchases. At the same time, demand for such loans both from households and firms has declined, the survey found. The poll was conducted between December 19 and January 9 and so will not fully take into account the unprecedented injection of nearly half a trillion euros ($650 billion) of liquidity into the banking system by the ECB at the end of last year. The data will, however, heighten concerns about a possible credit crunch in the 17 countries that share the euro. Banks already tightened lending conditions substantially in the final quarter of 2011, the ECB survey showed. A net 35 percent of banks did so in the period from October to December, compared with 16 percent in the preceding three months. In the case of mortgage loans, as many as 29 percent of banks said they had tightened conditions in the fourth quarter of 2011, up from 18 percent in the preceding quarter and \"higher than expected,\" the ECB said. \"Similarly to corporate loans, increased cost of market funding and balance sheet constraints were put forward as key driving factors behind these developments,\" it said. Demand for loans by both companies and consumers is on the decrease. Banks reported a \"strong further contraction\" of 27 percent in demand for mortgage loans in the last quarter of the year, compared with 24 percent in the third quarter. \"This was mainly on account of a clear deterioration of housing market prospects and weakening consumer confidence,\" the ECB said. In the case of businesses, the decline was not quite as steep, with demand falling 5.0 percent in the fourth quarter after 8.0 percent in the third. \"This decline was driven by a moderation in the pace of economic activity,\" the ECB explained. Last week, fears of an emerging credit crunch in the eurozone increased as data showed a sharp slowdown in bank lending to the private sector. The ECB calculated in regular monthly data that growth in loans to the private sector slowed substantially to just 1.0 percent in December from 1.7 percent in November. Last month, in a series of special measures, the ECB launched its longest-ever liquidity operations, lending eurozone banks as much as they wanted for a period of three years at super-cheap rates. Banks in the region queued up in their hundreds to borrow 489 billion euros in the first-ever such operation. Nevertheless, there have been concerns that banks are simply hoarding the cash, rather than lending it to businesses and households as the ECB hoped they would, and lenders are parking record amounts of cash in the central bank\'s overnight storage facility.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ecb eurozone banks more reluctant to lend ecb eurozone banks more reluctant to lend

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ecb eurozone banks more reluctant to lend ecb eurozone banks more reluctant to lend

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Presenter Sherine Ramahi proud of her career

GMT 06:46 2017 Sunday ,19 November

Presenter Sherine Ramahi proud of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday