growth in business loans picks up again (ECB)

Frankfurt (awp / afp) – Growth in loans granted by euro-zone banks to businesses picked up again slightly in September, reversing the decline observed since the spring, the European Central Bank (ECB) said on Wednesday.

Loans to industrial and commercial companies, adjusted for certain strictly financial transactions, rose 2.1% in September, after 1.5% in August and 1.7% in July and increases of more than 5% at the start of the year. year.

Thanks to the liquidity obtained in response to the crisis, companies have been less inclined in recent times to resort to bank credit, also favoring other forms of external financing, as shown by the quarterly credit survey published on Tuesday by the monetary institute.

Loans to households remained at a high level, climbing 4.1% in September, almost as much as in the summer, while remaining drawn by loans for the purchase of homes.

Overall, growth in loans to the private sector reached 3.2% in September, compared to 3.0% in July and August, against the backdrop of interest rates hovering at their lowest.

The growth of the M3 money supply fell again, to 7.4%, while the public aid triggered in the face of the first wave of the Covid-19 pandemic is normalizing.

The M3 aggregate is used by the ECB as a leading indicator of inflation, including cash in circulation, loans over 2 years and deposits from households and businesses.

But the sharp rise in prices at the moment, around 3%, is mainly linked to soaring energy prices and bottlenecks, which are still considered temporary by the Central Bank.

The institute, which aims for inflation of 2% in the medium term, meets Thursday its board of governors to decide on the direction of monetary policy.

The expansive course will be maintained, experts estimate, with an appointment set for December to then decide on a gradual weaning of the liquidity injected into the markets.

afp / lk

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