Credit impulse slightly picked up in August 2019 for non-financial corporations (NFCs), while it was nearly unchanged for households. In spite of the slowdown in the euro area GDP in Q2 2019 (+1.1% yoy in 2019 Q2 vs +1,3% in Q1), exceptionally low lending rates have continued to support loans outstanding, which reached +3.4% year-on-year for households, and +4,3% for non-financial corporations. Banks expect demand from NFCs to stay close to its current levels in Q4 2019, which should experience a modest tightening in lending conditions. Credit institutions also expect a moderation in loans for house purchase and consumer loans’ demand from households. They intend to ease lending conditions for the former and to tighten them for the latter.
Index Eurozone
