ECB bank lending survey: Loan terms improved and demand increased - BBH

Research Team at BBH, notes that the ECB bank lending survey was reported and the survey was conducted between June 14 and June 29, so a few days after the referendum were captured. 

Key Quotes

“It reported that loan terms improved and demand increased.  It did not seem to find much impact from the UK referendum and cited competitive pressures as the main factor behind the easing of credit standards to companies and households. 

The new TLTROs were seen by the banks as bolstering their profitability and translating into more relaxed lending terms.  However, moving forward, banks anticipated that the regulatory/supervisory requirements would have a net tightening impact in H2.  For its part, the euro seems to be comfortable in the range seen before the weekend between $1.1025 and $1.1150, with the ECB meeting on Thursday looming.”