Lending by euro zone banks to companies grew at the slowest pace in 1-1/2 years in November, ECB data showed on Friday, suggesting a growing mood of caution despite strength in financial markets and new European Central Bank stimulus.

With the euro zone economy barely expanding, the ECB resumed its 2.6 trillion euro bond buying program late last year, as well as cutting rates and unveiling a new round of cheap loans to banks that extend credit to the economy.

Yet loans to non-financial corporations grew by 3.4% year on year that month, the lowest since April 2018, the data showed. Growth in loans to households steadied at 3.5%.

Lending data normally lags economic activity and ECB President Christine Lagarde suggested last month that the worst of the bloc's slowdown may now over and an often-discussed but elusive recovery might now begin. (Reuters)

Source: www.businessworld.ie