Expect A Credit-Less European Recovery: Citi

The trend of tightening lending standards from European banks is slowing and likely to reverse, and it looks like more credit will become available to the private sector in the coming quarters, but Citi analysts led by Guillaume Menuet still think that Europe is facing a credit-less recovery. European banks credit-less recovery “Although euro area banks have improved their capital positions since 2008-09, the flow of loans to the private sector has been negative since the second quarter of 2012. Most member states have suffered from a credit squeeze, and some have experienced a credit crunch,” writes Menuet. “Gradual improvement…