European Economic Perspectives: Eurozone: How is bank lending holding up?

Research evidence excerpt

European Economic Perspectives: Eurozone: How is bank lending holding up?

Global Research

27 July 2026ab

European Economic Perspectives Economics

Europe Ex. UKEurozone: How is bank lending holding up?

Reinhard Cluse

Economist

Private credit growth stable at 3.9% y/y reinhard.cluse@ubs.com

+44-20-7568 6722

Monetary and credit dynamics provide a gauge how changes in ECB monetary policy

and geopolitical events affect financial conditions. In this report, we analyse the newly Anna Titareva

Economistreleased Eurozone monetary and credit data for June which showed stability in private

anna.titareva@ubs.com

sector credit growth, at 3.9%, the strongest since March 2023. Loans to non-financial +44-20-7568 5083

corporations (NFCs) and to households were both stable at 4% y/y and 3%, respectively.

The growth rate in M3 picked up by 0.3pp to 3.3% y/y. See annex for data, charts and Franziska Fischer

concepts.

franziska.fischer@ubs.com

+41-44-239 2054

Loans to NFC and to households both stable at 4.0% and 3.0%, respectively

Felix Huefner

The growth in total credit by Monetary and Financial Institutions (MFI) was unchanged in Economist

June, at 2.4% y/y. Public sector credit growth was up by 0.2pp to +0.3% y/y, while felix.huefner@ubs.com

private sector lending (adjusted for loan sales and securitisation) was unchanged at +49-69-1369 8280

3.9% y/y, the highest since March 2023. The main sub-components of private sector

lending were all stable too: loans to NFCs at 4.0% y/y and household loans at 3.0% y/y

(with consumer loans and mortgages also stable at 5.1% and 3.1%, respectively) (Fig.

1-16). The sequential momentum in private sector credit (which we measure by the 3-

month moving average of m/m growth) was largely stable too (Fig. 17-24). Compared to