Bank lending to households in the Eurozone saw a notable increase in February 2025, rising by 1.5% year-on-year to reach €6.956 trillion.
Eurozone lending growth above expectations
This marked the largest annual increase since June 2023, surpassing the previous month's growth of 1.3% and exceeding market expectations, which had forecasted a rise of 1.4%. This acceleration in lending to households indicates a growing demand for credit, despite broader economic uncertainties.
Similarly, lending to businesses experienced robust growth, rising by 2.2% in February, the highest rate of growth since July 2023. This represented an uptick from the 2% growth seen in January, signaling stronger business investment and credit demand as firms continue to recover and expand in a post-pandemic economy.
Private sector credit increases
As a result, overall private sector credit growth, which includes lending to both households and non-financial corporations, also saw a notable increase, rising to 2.5% from 2.3% the previous month. This broader expansion in credit suggests a positive economic trend, with more capital circulating within the private sector, potentially fueling both consumer and business spending in the coming months. These figures reflect a strengthening financial environment in the Eurozone, with credit growth outperforming expectations.
