Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Credit standards across the eurozone were 'broadly unchanged' in the first quarter of 2024, though loan demand from firms declined despite expectations of recovery, the latest ECB Bank Lending Survey showed.
The "ongoing central bank balance sheet reduction continued to exert tightening pressure", with banks reporting a small net tightening of credit standards, the ECB said. For the first time since Q4 2021, banks reported a moderate net easing of their credit standards for loans to households for house purchases (net -6%), whereas credit standards for consumer credit and other lending to households tightened further (net 9%).
The positive impact of policy rate decisions on bank profits is expected to diminish over the next six months, which could tighten lending standards in coming quarters, the ECB said.
Doves on the ECB's Governing Council would be likely to point to tighter monetary conditions as they argue for clear guidance for rate cuts over 2024. (see MNI SOURCES: ECB Still Divided Over Guidance As It Nears Cuts)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.