Market Environment

According to Eurostat, GDP rose by 0.4% QoQ in the Euro Area and in the EU 28 in the second quarter of 2015, down slightly from the 0.5% QoQ growth in the prior quarter.

According to the July 2015 European Central Bank lending survey, credit standards for loans to enterprises, consumer credit and loans to households eased in net terms in the second quarter of 2015, supporting the recovery of loan growth.

In Q2 15, euro area banks reported a net easing of credit standards on loans to enterprises for the fifth consecutive quarter, driven in particular by banks’ competition and cost of funds. Across firm size, credit standards were eased on loans to both large firms and small and medium-sized enterprises (SMEs).

Net demand for loans to enterprises improved significantly in Q2 15 mostly due to general level of interest rates and fixed investment. The net percentage of banks reporting an increase in demand for loans to enterprises was 13%, up from 1% in the previous quarter. Banks reported a further strong net increase in the demand for housing loans as well.