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Banking Sector Reduces Lending

Published: November 6, 2013; 13:18 · (Vindobona)

Instead of offering loans to the corporate sector, banks tend to invest in sovereign bonds. The CESEE region is particularly affected by this.

Banking Sector Reduces Lending / Picture: © Flickr

The European banking industry increases its exposure in sovereign bonds at the expense of the corporate sector. Between the beginning of 2011 and the end of 2012, European banks have cut corporate lendings by more than € 500bn, the rating agency Fitch reports. In the same period, sovereign bond portfolio held by the banking sector was up by € 550m.

According to Fitch, this is…

This article includes a total of 460 words.

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