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ECB Banking Lending Survey; Rate of Tightening Slower Than 3Q23. CRE, Construction Feature.

FINANCIALS SECTOR

ECB bank lending survey outfirst reaction highlights:


  • Further moderate net tightening, more expected in 1Q24 (3Q23 saw tightening faster than previously expected, so rate of change reducing).
  • Loan demand (both personal and corporate) continued to drop “substantially”, albeit less than the rate in 3Q23.
  • Real estate and construction were the focus sectors for lending condition tightening.

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