On Friday, data from a European bank showed that the eurozone companies continued to attack the banks in May. No change to be seen even in the situation of crisis. This was because the companies dependance on the bank’s credit during the time of lockdown due to Coronavirus.
The lockdown led to millions of people glued to their homes and much of the company’s economy to stop. The things stopped in March and this forced the firms to rely on the banks to find the emergency cash when things started to begin in May.
This led to the growth in non- financial corporations to increase to 7.3% in May from 6.6%, which was earlier this month. This is the best rate rise from 2009. But the household lending remained steady at 3.0%
Last week ECB loaned around 1.3 trillion euros to the banks at the rate minus 1%, conditioned that banks should maintain their stock of lending.
The annual growth rate of the money supply accelerated from 8.2% to 8.9%. This knocked the expectation of the Reuters polls for 8.6%.