Eurozone Bank Lending Growth Improves

(RTTNews) - Eurozone bank lending increased at a faster pace in June despite trade tariff concerns weighing on economic growth, data from the European Central Bank showed Friday.

Adjusted loans to the private sector logged an increase of 3.0 percent in June, faster than the 2.8 percent rise in May. Among the borrowing sectors, annual growth in adjusted loans to households rose to 2.2 percent from 2.0 percent in May. Likewise, increase in loans to non-financial corporations accelerated to 2.7 percent from 2.5 percent.

The broad monetary aggregate M3 grew at a slower pace of 3.3 percent after May's 3.9 percent increase. Likewise, growth in narrow measure M1 eased to 4.6 percent from 5.1 percent.

In the three months up to June, M3 logged an annual expansion of 3.7 percent.

A strong rebound in bank lending in June has eased concerns that uncertainty about the global economy - and tariffs in particular - was hindering proper monetary transmission, ING economist Bert Colijn said.