Euro zone banks expect loan demand to rise in the third quarter while they keep ...
FILE PHOTO: The euro sign is photographed in front of the former head quarter of the European Central Bank in Frankfurt, Germany, April 9, 2019. REUTERS/Kai Pfaffenbach/File Photo
With economic growth slowing and uncertainty on the rise, the ECB has already given banks a new round of ultra cheap loans and flagged more policy easing, hoping that lenders maintain the flow of credit even amid a downturn. “Lower risk tolerance and, for loans to enterprises, heightened risk perceptions, accompanied by higher cost of funds and balance sheet constraints, contributed to the tightening of credit standards across loan categories,” the ECB said in a statement.
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