Jul 27, 2022 04:26AM ET
Data from the European Central Bank showed that lending to Eurozone businesses accelerated in June, refuting concerns that banks are tightening access to credit as uncertainty over inflation and the fallout from the war in Ukraine point to recession risks, the data showed.
Fresh data showed on Wednesday that lending to companies in the 19-nation Eurozone rose 6.8 percent in June from 5.8 percent a month earlier, while credit growth to households held steady at 4.6 percent.
Banks said they tightened access to credit as early as the second quarter, and the ECB's quarterly credit survey last week pointed to even greater caution in the current quarter as high fuel prices and the war in Ukraine deplete savings and dampen confidence.
This has raised fears that the ECB's rate hikes, which began with a 50 basis point increase last week and will continue into next year, could deepen the downturn.
According to the adjusted data, the monthly flow of fresh loans to businesses amounted to 54 billion euros last month, more than double the May figure.
At the same time, growth in the M3 indicator for money in circulation in the euro area slowed to 5.7% from 5.8%, partly reflecting the ECB's reduction in money printing. This still exceeded expectations by 4.6%.