FXStreet (Mumbai) – The European Central Bank (ECB) quarterly survey showed on Tuesday, the credit conditions in the euro zone’s financial sector improved, thanks to the central bank’s ultra-massive QE program.
As Bloomberg reports, “Credit standards on loans to companies eased for the sixth consecutive quarter, the ECB’s Bank Lending Survey showed on Tuesday. Terms for mortgages tightened, with banks citing national regulation as the primary cause. A small majority of lenders reported an increase in profitability over the past six months as a result of the central bank’s quantitative-easing program, though deterioration is seen over the next two quarters.”
While the ECB noted in the report, “When negotiating on the conditions for new loans, banks continued to ease their terms and conditions on loans across all categories, mainly driven by a further narrowing of margins on average loans. As with credit standards, the main factor contributing to the easing in terms and conditions was competition.”
The report also showed, “marginal net deterioration in retail funding, while access to the other main sources of funds, namely money markets, debt issuance and securitization, improved.”
(Market News Provided by FXstreet)