Bank lending in the 17 countries that share the euro expanded in December but lending to businesses in the region stalled at the end of 2010, according to Bloomberg News. On Friday, the European Central Bank reported that private sector lending increased 1.9% in December, slowing from 2% the month before and falling just short of economists’ forecast for lending growth to match that pace again in the last month of the year.
Within the report, lending to non-financial firms dropped by €24 billion in December following a €8 billion increase the prior month, although loans to businesses increased by an annual rate of 0.2% during that time. Bank lending to households saw stronger expansion in the report, with the annual rate of loan growth quickening from 2.8% in November to 3% to close 2010. Annual growth of M3 money was seen slowing to a 1.7% annual rate of growth from 2.1% previously.