ECB Says Lending Conditions for Companies Ease Amid Stimulus
- Competitive pressures main driver, Bank Lending Survey shows
- Conditions tightened for home loans as demand increased
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The European Central Bank said euro-area lending conditions continued to improve for companies last quarter, backing its case that its unprecedented stimulus combined with a stronger banking system is aiding the region’s recovery.
Standards for corporate loans eased and demand rose, driven by low interest rates, and funding needs for investments and deals, the ECB said in its quarterly Bank Lending Survey published Tuesday. While demand for mortgages also rose, the terms unexpectedly tightened. Banks in the previous survey had predicted they would remain unchanged.