EZ mortgage demand keeps falling despite a lower bar

Info from the ECB’s bank lending survey:

• Corporate credit standards tightened in Q1 but eased for household mortgages
• Corporate loan demand declined substantially in Q1, contrary to expectations for stabilization
• In Q2, banks see tighter credit standards for corporates but no change for households
• Banks see small net decrease in corporate loan demand in Q2, net increase in demand for loans to households
• Smaller ECB balance sheet has negative effect on bank liquidity, financing conditions

This article was written by Arno V Venter at www.forexlive.com.