While Euro Area lending balances have turned positive year-over-year for the first time since 2012, this growth comes from the smallest sectors like loans to financial corporations and insurance/pension funds. Lending to the largest sectors, households and non-financial corporations, remains slow with levels stagnant or declining. Specifically, loans to households are still negative in Spain and Ireland while growing modestly in Italy, and loans to non-financial corporations continue to contract across Spain, Ireland, Italy and Germany.

1. Euro Area Lending Update
Much has beenmade recentlyaboutthe “rebound”inEuroArea lendingbalancesasloanbalanceshave turned
positive onay/ybasisfor the firsttime since 2012:
p
While thisisunquestionablyapositive development, the source of the lendinggrowthisfromthe smallestsectors
(financial corporatesexcludingpensionandinsurance andloanstopensionfundsandinsurance companies) while
lendinggrowthtothe largestsegments,householdsandnon-financial corporates,remainsveryslow andlevels
remainstagnant.
To beginwith, we see below thatloanstohouseholds(blue line) andnon-financial corporations(redline)make up
mostof the loanbalances:
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Sep-98
May-99
Jan-00
Sep-00
May-01
Jan-02
Sep-02
May-03
Jan-04
Sep-04
May-05
Jan-06
Sep-06
May-07
Jan-08
Sep-08
May-09
Jan-10
Sep-10
May-11
Jan-12
Sep-12
May-13
Jan-14
Sep-14
Euro Area Lending to Households, Non-Financial
Corporations, Financial Corporations and
Insurance Companies and Pension Funds, Y/Y
Euro Area Lending to Households, Non-Financial Corporations, Financial Corporations and
Insurance Companies and Pension Funds, Y/Y

2. 1. To Households
Loans to households,the largestsector,remainnegative y/y:
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0% Sep-97
May-98
Jan-99
Sep-99
May-00
Jan-01
Sep-01
May-02
Jan-03
Sep-03
May-04
Jan-05
Sep-05
May-06
Jan-07
Sep-07
May-08
Jan-09
Sep-09
May-10
Jan-11
Sep-11
May-12
Jan-13
Sep-13
May-14
Jan-15
Euro Area Lending to Each Sector, By Percentage
To Households
To Non-Financial Corporates
To Financial Corporates, Excluding Insurance and Pension
To Insurance Corporations and Pension Funds

3. From a level perspective,loanstothe householdsectorhave beenflattishforalongtime because,aswe will see
later,growthGermanyhouseholdlendingisoffsettingcontinuedcontractioninthe periphery:
2. To Non-Financial Corporations
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0% Sep-98
May-99
Jan-00
Sep-00
May-01
Jan-02
Sep-02
May-03
Jan-04
Sep-04
May-05
Jan-06
Sep-06
May-07
Jan-08
Sep-08
May-09
Jan-10
Sep-10
May-11
Jan-12
Sep-12
May-13
Jan-14
Sep-14
Euro Area Lending to Households, Y/Y
Euro Area Lending to Households, Y/Y
2000000
2500000
3000000
3500000
4000000
4500000
5000000
5500000
Sep-97
Jun-98
Mar-99
Dec-99
Sep-00
Jun-01
Mar-02
Dec-02
Sep-03
Jun-04
Mar-05
Dec-05
Sep-06
Jun-07
Mar-08
Dec-08
Sep-09
Jun-10
Mar-11
Dec-11
Sep-12
Jun-13
Mar-14
Dec-14
Euro Area Lending to Households, Level Data
Lending to Households, Level Data

4. Loans to non-financial corporationsare still declining:
From a level perspective,balanceshave stabilizedattheirlow levels:
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Sep-98
Apr-99
Nov-99
Jun-00
Jan-01
Aug-01
Mar-02
Oct-02
May-03
Dec-03
Jul-04
Feb-05
Sep-05
Apr-06
Nov-06
Jun-07
Jan-08
Aug-08
Mar-09
Oct-09
May-10
Dec-10
Jul-11
Feb-12
Sep-12
Apr-13
Nov-13
Jun-14
Jan-15
Euro Area Lending to Non-Financial Corporations,
Y/Y
Euro Area Lending to Non-Financial Corporations, Y/Y
2000000
2500000
3000000
3500000
4000000
4500000
5000000
5500000
Sep-97
May-98
Jan-99
Sep-99
May-00
Jan-01
Sep-01
May-02
Jan-03
Sep-03
May-04
Jan-05
Sep-05
May-06
Jan-07
Sep-07
May-08
Jan-09
Sep-09
May-10
Jan-11
Sep-11
May-12
Jan-13
Sep-13
May-14
Jan-15
Euro Area Lending to Non-Financial Corporations,
Level Data
Euro Area Lending to Non-Financial Corporations, Level Data

5. 3. To Financial CorporationsExcluding Insurance Companiesand PensionFunds
Loans to financial corporationsexcluding insurance companiesandpensionfundshave surgedrecently,perhapsin
response toQE:
4. To Insurance Companiesand PensionFunds
Loans to insurance companiesandpensionfundshave surgedevenmore,perhapsinresponsetoQE:
0
200000
400000
600000
800000
1000000
1200000
1400000
Sep-97
Jun-98
Mar-99
Dec-99
Sep-00
Jun-01
Mar-02
Dec-02
Sep-03
Jun-04
Mar-05
Dec-05
Sep-06
Jun-07
Mar-08
Dec-08
Sep-09
Jun-10
Mar-11
Dec-11
Sep-12
Jun-13
Mar-14
Dec-14
Euro Area Lending to Financial Corporations
Excluding Insurance and Pension Funds, Level
Data
Euro Area Lending to Financial Corporations Excluding Insurance and Pension Funds, Level
Data

6. From a country specificperspective,we see that loansto the householdsector continue to contract in Spain and
Ireland,while Italy is seeingmodestgrowth and Germanyis seeinga surge:
0
20000
40000
60000
80000
100000
120000
140000
160000
Sep-97
May-98
Jan-99
Sep-99
May-00
Jan-01
Sep-01
May-02
Jan-03
Sep-03
May-04
Jan-05
Sep-05
May-06
Jan-07
Sep-07
May-08
Jan-09
Sep-09
May-10
Jan-11
Sep-11
May-12
Jan-13
Sep-13
May-14
Jan-15
Euro Area Lending to Insurance Companies and
Pension Funds, Level Data
Euro Area Lending to Insurance Companies and Pension Funds, Level Data

7. 200000
300000
400000
500000
600000
700000
800000
900000
1000000
Jan-03
Aug-03
Mar-04
Oct-04
May-05
Dec-05
Jul-06
Feb-07
Sep-07
Apr-08
Nov-08
Jun-09
Jan-10
Aug-10
Mar-11
Oct-11
May-12
Dec-12
Jul-13
Feb-14
Sep-14
Apr-15
Spain: Lending to Households, Level Data
Spain: Lending to Households, Level Data
50000
70000
90000
110000
130000
150000
170000
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Ireland: Lending to Households, Level Data
Ireland: Lending to Households, Level Data

8. In the non-financial corporate sector we see continuedcontraction across all these countries
250000
300000
350000
400000
450000
500000
550000
600000
650000
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Italy: Lending to Households, Level Data
Italy: Lending to Households, Level Data
1400000
1410000
1420000
1430000
1440000
1450000
1460000
1470000
1480000
1490000
1500000
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Germany: Lending to Households, Level Data
Germany: Lending to Households, Level Data

9. 300000
400000
500000
600000
700000
800000
900000
1000000
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Spain: Lending to Non-Financial Corporations,
Level Data
Spain: Lending to Non-Financial Corporations, Level Data
50000
70000
90000
110000
130000
150000
170000
190000
210000
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Ireland: Lending to Non-Financial
Corporations, Level Data
Ireland: Lending to Non-Financial Corporations, Level Data

10. 450000
550000
650000
750000
850000
950000
1050000
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Italy: Lending to Non-Financial Corporations,
Level Data
Italy: Lending to Non-Financial Corporations, Level Data
750000
800000
850000
900000
950000
1000000
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Germany: Lending to Non-Financial
Corporations, Level Data
Germany: Lending to Non-Financial Corporations, Level Data