Eurozone banks see further credit tightening

Discussion in 'Wall St. News' started by ASusilovic, Oct 7, 2007.

  1. Fears that the eurozone would suffer significant economic fall-out from the global credit squeeze heightened on Friday after the European Central Bank reported a sharp slowdown in demand for loans to business and a significant toughening of credit standards applied by banks.

    Demand for loans by business was the weakest for two years and a further deterioration was expected in the final months of the year, according to the ECB bank lending survey. The percentage of banks reporting that they had tightened credit conditions over the past three months on loans to business and to people buying houses was the largest since the survey began in early 2003.

    The results of the survey showed the “long autumnal shadow being cast over eurozone economic prospects” by the recent financial market turmoil, said Julian Callow, economist at Barclays Capital. Compared with US rivals, eurozone companies are more reliant on bank lending, exacerbating the impact of tougher borrowing conditions.

    Let me guess what it means: no more ECB rate hikes...? :D
  2. Trichet should be cutting rates, but he's too preoccupied with showing that his is bigger than Bernanke's.
    His exchange rate, that is.
  3. Sweeet -- I'm short a bunch of ESTX50.

    Didn't get filled (in full) on Friday at the close -- dirty sluts.