Financing the Economy. February 2016

Lending and borrowing activity in the euro area has increased slowly among companies and households, but it remains quite calm. Companies and households don't want to increase substantially their debt liabilities and investment because of their relatively high debt levels and the continuing economic uncertainty. The recovery in demand has been helped by moderate growth in economic activity, falling unemployment, the banks in the euro area starting to loosen their lending standards a little, and falling interest rates on loans to companies and households.