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Eurozone’s loan growth to non-financial corporates improved from 4% to 4.2% year-on-year in August and loan growth to households also increased marginally from 3% to 3.1% YoY, points out Bert Colijn, Senior Economist at ING.

Key Quotes

“After lending growth stagnated earlier in the year, a subdued acceleration has resumed, but given how marginal the pickup is, it is unlikely to prompt an acceleration in investment growth in the months ahead.”

“The slowdown in M3 growth is related to the wind-down of quantitative easing. The more narrow measure of money supply, M1, also declined from 6.9% to 6.4%.”

“Conditions for bank lending remain quite favourable.”