Money supply rises: lending continues to increase

businesses in the Euro-Zone in the Corona-crisis, strengthened with Bank loans. Money houses ranged in may, 7.3 per cent more loans to companies from than a yea

Money supply rises: lending continues to increase

businesses in the Euro-Zone in the Corona-crisis, strengthened with Bank loans. Money houses ranged in may, 7.3 per cent more loans to companies from than a year earlier, as the European announced Central Bank (ECB) on Friday in Frankfurt. In April, there had been a strong growth of 6.6 per cent. "The increase in credit to the private sector is probably due to a strong demand on existing lines of credit, a note on strong investment activity, it is, in our view," said Economist Ralf Umlauf from Helaba.

Because of the declines in business during the crisis, many companies are reliant on loans. Also, the ECB pushes the credit. The banks have covers at the most recent monetary salvo of the ECB in the Record with a total size of 1.31 trillion euros. A strong increase in the quantity of money can speak in the medium-to long-term higher Inflation.

Therefore, the monetary authorities look carefully at the quantity of money M3. You grew up in may to 8.9 percent. Economists had only expected an increase of 8.6 percent. M3 includes cash, deposits on current accounts as well as money market papers and bonds.

Updated Date: 26 June 2020, 09:20

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