Eurozone Banks Hoping for Easing Business Loan Standards in Q2 2019 - Forex News by FX Leaders
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Eurozone Banks Hoping for Easing Business Loan Standards in Q2 2019

Posted Tuesday, April 9, 2019 by
Arslan Butt • 1 min read

A survey by European Central Bank (ECB) reveals that Eurozone banks expect easing of standards in the upcoming quarter for business loans and consumer credit to tackle fierce competition and concerns of slowing in demand, especially in Italy and Spain.

Amid threats of a global economic slowdown and potential recession, policymakers in the central bank have recently approved very cheap loans to commercial banks, fearing interruption in credit flow which could worsen the economic slowdown.

However, the survey reveals that banks have no plans to make it more challenging for businesses to apply for and receive loans, on account of competitive pressure. This news comes against the backdrop of cooling off of demand for credit among consumers and companies, especially in Italy and Spain.

Italian banks have announced their intention to tighten lending terms for a second consecutive quarter, over concerns of rising costs and risk perception. Notwithstanding this news, Eurozone banks continue to remain optimistic that net demand for housing loans, consumer credit and business loans could see an uptick in Q2 2019.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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