Latest ECB lending survey just out 24 Oct
- In terms of the impact of the ECB's expanded asset purchase programme (APP), euro area BLS banks continued to report a positive impact on their liquidity position and market financing conditions over the past six months, but a negative impact on their profitability due to lower net interest margins
- responding banks, indicated that they had mainly used the additional liquidity related to the APP to grant loans.
- the net easing impact of the APP continued to be stronger for terms and conditions than for credit standards
- banks assessed the ECB's negative deposit facility rate to have had a positive impact on their lending volumes while having a negative impact on their net interest income.
Full survey here for those keen to read it in full.
