ECB Says Banks See Euro-Zone Credit Demand Bottoming Out (2)

Demand for credit in the euro zone may be bottoming out after falling for more than a year in the face of rising interest rates and a struggling economy, according to the European Central Bank.

The ECB’s quarterly Bank Lending Survey, published Tuesday, showed that the drop in appetite for business and consumer loans was smaller in the fourth quarter than in the previous three months.

“For the first time since early 2022, banks expect a small net increase in demand for loans to firms and for housing loans in the first quarter of 2024,” the ECB said. ...