Menu
Banking Exchange Magazine Logo
Menu

Euro-Zone Reports First Loan Demand Increase Since 2022

Demand for housing loans increase by 16%

  • |
  • Written by  Banking Exchange staff
 
 
Euro-Zone Reports First Loan Demand Increase Since 2022

European banks have reported the first increase in demand for consumer credit and housing loans since 2022, according to the European Central Bank (ECB).

The Quarterly Bank Lending Survey found demand for housing loans increased by 16%, while demand for consumer credit rose by 13% during the second quarter of 2024.

However, demand for housing loans fell short of banks' expectation of a 22% increase for the second quarter.

According to the ECB, the main driver of the rise in housing loan demand was improved housing market prospects, which was cited primarily by German banks.

Meanwhile, the overall impact of interest rate levels and consumer confidence on demand was comparatively small. In contrast, consumer credit demand benefited from increased spending on durable goods and improved consumer confidence.

Despite the rise in consumer credit and housing loan demand, the report also revealed a continued decrease in firms’ net demand, which was driven by high interest rates and weak fixed investment.

Even though net demand for loans fell by 7% over the second quarter, this decline marked a significant improvement compared to the 28% drop recorded in the previous quarter.

The report also noted a significant divergence among the four largest euro area countries, with French and Italian banks experiencing a continued decline in loan demand, while banks in Germany and Spain reported an increase.

The slight overall decline in net demand aligned closely with banks’ expectations reported in the previous quarter.

back to top

Sections

About Us

Connect With Us

Resources

 

Banking Exchange

This Is the Week to Register for the
BANKING EXCHANGE FLY-IN CONFERENCE

CHICAGO, Illinois — NOVEMBER 7, 2024
Registration closes at 5 pm central time Tuesday, November 5


Conference to be held at the University of Chicago, Booth Business School Downtown

This one-day event is open to all executives at U.S. financial institutions. On the agenda, will be: