Net demand for Consumer credit and other lending to households increased in the fourth quarter of 2019, driven largely by the low general level of Interest Rates, Consumer confidence and increased spending on durable goods.
According to the January 2020 euro area bank lending survey (BLS, net demand for Consumer credit and other lending to households increased in the fourth quarter of 2019, driven largely by the low general level of interest rates, Consumer confidence and increased spending on durable goods.
The net demand for housing loans also increased in the fourth quarter of 2019, driven primarily by the low general level of interest rates, while favourable housing Market prospects and Consumer confidence also contributed positively, the survey report stated.
However, the net demand for loans to enterprises declined in the fourth quarter of 2019 (the first time this had been seen since the fourth quarter of 2013), despite banks expecting it to remain stable overall.
That decline in net demand was broadly based across a number of larger and smaller euro area countries, the report specified.
In contrast, financing needs for fixed Investment ceased to contribute positively to firms’ loan demand, the report added.
The BLS reports that credit standards for Consumer credit and other lending to households tightened further, despite expectations that they would remain broadly unchanged.
The euro area bank lending survey (BLS), which is conducted 4 times a year, was developed by the Eurosystem in order to improve its understanding of banks’ lending behaviour in the euro area.
