Survey finds banks' stocks of non-perfor­ming loans can contri­bute to squeez­e on new lendin­g activi­ty in coming months­FRANKFURT: Banks in the eurozone expect demand for loans to ease in the first quarter, a European Central Bank survey published Tuesday showed, as factors braking the single currency area loom larger. “Net demand continued to increase across all loan categories in the fourth quarter of 2018, but banks expect some moderation in demand over the next three months,” the ECB said in a statement. But many observers have pointed to signs the eurozone is slowing in both “hard” economic data and “soft” indicators from surveys. In the coming months, the survey found that banks’ stocks of “non-performing” loans, where the borrower has fallen behind on repayments, could contribute to a squeeze on new lending activity. Meanwhile, lenders reported they continued to ease the terms and conditions of repayment on loans in the fourth quarter.

Source: The Express Tribune January 22, 2019 11:48 UTC