Free Trial

MNI BRIEF: Credit Tightening Surprisingly Strong –ECB's De Cos

(MNI) ROME

Eurozone bank lending is surprising European Central Bank policymakers by “falling faster than we expected” as the economy heads into a possible mild recession, Bank of Spain Governor Pablo Hernandez de Cos told an event on Friday.

The fact that credit is falling faster than other indicators is contributing to maintaining excess liquidity in the system and could be partly behind poor remuneration of deposits, particularly in Spain, de Cos said.

There are mixed signals as to the future paths of nonperforming loans and special surveillance loans, he said. (MNI SOURCES: Market Pricing For Cut Prompts ECB Jawboning)

MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com

To read the full story

Close

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.