Eurozone: Credit demand continues to increase - ING

Bert Colijn, senior economist at ING, points out that according to the bank lending survey conducted by the ECB, demand for loans has increased even as concerns around economic growth has mounted, but the credit standards have remained unchanged in 4Q.

Key Quotes

“Uncertainty around economic conditions has not yet impacted the appetite for borrowing in the eurozone, as banks experienced an increase in demand for loans from both businesses and consumers. The increase was slightly smaller than in the third quarter but supportive of investment growth nonetheless. Expectations are that demand for credit will grow somewhat slower in the first quarter, which would be in line with a more modest investment environment.”

“Overall, investment continues to be supported by growing demand for credit, which is an important sign in times of concerns about eurozone growth.”