Lending to companies and household has decreased by 0.3% annually. European governments are trying to spend their way out of a recession trying to stimulate consumption, and as it stands the slight growth in the last quarter could have been short lived.
The annual rate of lending to households also fell by 0.3%, following a fall of 0.2% in August.
Mortgage lending fell at an even faster pace, by 0.6%.
“The September credit data reinforce concerns that weak bank lending could hold back eurozone recovery,” said Howard Archer at IHS Global Insight.
He added that restricted lending could remain a “serious handicap” to recovery.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.