Better report by eurozone banks
Fewer eurozone banks tightened lending conditions in the second quarter than in the first as better financial market conditions appeared to ease the flow of funds to financial institutions, a survey by the European Central Bank said. But more lending officers of the 112 banks polled cited worries about economic woes - rather than market turbulence - as a reason for stricter credit standards, while a growing number said that rules would tighten further in the next months.
The ECB said the most important factor in tightening credit rules in the past quarter "continued to be a deterioration in expectations about the economic outlook".
Fewer eurozone banks tightened lending conditions in the second quarter than in the first as better financial market conditions appeared to ease the flow of funds to financial institutions, a survey by the European Central Bank said. But more lending officers of the 112 banks polled cited worries about economic woes - rather than market turbulence - as a reason for stricter credit standards, while a growing number said that rules would tighten further in the next months.
The ECB said the most important factor in tightening credit rules in the past quarter "continued to be a deterioration in expectations about the economic outlook".
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