BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Loan growth continued to be supported by easing credit conditions and rising demand, according to the quarterly bank lending survey from the European Central Bank.
Credit standards for loans to enterprises eased notably in the first quarter. In addition, credit standards on loans to households for house purchase eased further.
At the same time, credit conditions on consumer credit and other lending to households eased somewhat. For the second quarter, banks expect a net easing of credit standards in all three segments.
Net demand continued to increase across all loan categories in the first quarter. The increase in loan demand from enterprises was attributable mainly to fixed investment, M&A activity and the general level of interest rates.
Low interest rates and consumer confidence underpinned demand for housing loan, while spending on durable goods, low interest rates and consumer confidence boosted consumer credit demand.
Further, the survey showed that ECB asset purchases and negative deposit facility rate have a positive impact on lending volumes. The survey was conducted between March 15 and April 3.
Copyright RTT News/dpa-AFX