Eurozone banks reported continued increase in loan demand across all categories in the fourth quarter, the bank lending survey from the European Central Bank showed Tuesday.
Demand from enterprises increased mainly due to fixed investment, the general level of interest rates, inventories and working capital, and M&A activity.
Demand for housing loans were underpinned by low interest rates and favorable housing market prospects. At the same time, spending on durable goods, the low general level of interest rates and consumer confidence continued to contribute positively to net demand for consumer credit.
The survey showed that credit standards remained broadly unchanged for enterprises and consumer credit, while they continued to ease for housing loans.
Further, credit terms and conditions eased for loans to enterprises and housing loans.
In response to regulatory and supervisory actions, banks strengthened their capital positions in the second half of 2017.
The BLS survey was conducted among 143 banks between December 1, 2017 and January 2, 2018.
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