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


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 |
MNI Rome Bureau | +34-672-478-840 |

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