London, Wednesday, 28 June 2023
In May 2023, bank lending to households in the Eurozone rose by 2.1 percent year over year to EUR 6.87 trillion, which was below the market consensus of a 2.3 percent gain and the worst growth rate since December 2016.
The European Central Bank's recent exceptional rate hikes have caused the demand for credit to continue to decline. While lending to businesses increased by 4.0 percent, it did so at the slowest rate since November 2021.
The pace of household and non-financial firm credit growth in the private sector as a whole slowed to 2.8 percent in May, the lowest level since May 2021.
(source: European Central Bank // Edited by: The Decision Maker - Finance editors)