Synthetic securitisation can free up bank capital. But does that mean banks lend more to firms? This ECB Blog post explores the effects of loan securitisation. We find that banks that issue synthetic securitisations lend marginally more, but also tend to pay more dividends.In theory, the securitisation of bank loans can strengthen the lending capacity of t...
Composite cost-of-borrowing indicator for new loans to corporations and for new loans to households for house purchase broadly unchanged at 3.80% and 3.54%, respectivelyComposite interest rate for new deposits with agreed maturity from corporations increased by 5 basis points to 2.26%; interest rate for overnight deposits from corporations broadly unchange...
Annual growth rate of broad monetary aggregate M3 stood at 3.4% in July 2026, after 3.3% in June 2026Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 3.1% in July from 3.5% in June (revised from 3.4%)Annual growth rate of adjusted loans to households stood at 3.1% in July, compare...
Use of artificial intelligence at work has doubled over the last two years and people report significant time-savings. But an ECB survey shows that perceived productivity gains vary widely and there are still barriers preventing many from adopting this new technology.How will AI affect employment and productivity?That is one of the most pressing questions ...
The rise of AI has driven a blistering rally in the tech sector, bringing stock market valuations to levels last seen during the dot-com bubble. Although AI is reshaping the economy, do today’s high valuations bear the risk of an abrupt and painful setback in the euro area?Valuations on the US stock market, as measured by the CAPE ratio, are currently clo...
The aggregate of total assets of EU-headquartered credit institutions increased by 3.63%, from €33.13 trillion in March 2025 to €34.33 trillion in March 2026During the same period, EU credit institutions’ aggregate non-performing loans ratio[1] increased by 0.02 percentage points year on year to stand at 1.98% in March 2026EU credit institutions’ aggre...
High energy prices have sparked new interest in energy-related renovations and non-fossil heating systems. This blog post argues that such investments cushion the impact of energy shocks on the building and construction sector.When energy prices skyrocket, that often comes as a heavy blow to the real estate and construction sector. Construction and buildin...
ECB unveils ten shortlisted design proposals for next series of euro banknotesEuropeans invited to have their say in online survey open until 21 SeptemberGoverning Council expected to select one design proposal around the end of the yearThe European Central Bank (ECB) today unveiled the shortlisted design proposals for the next series of euro banknotes and...
The Governing Council today decided to keep the three key ECB interest rates unchanged. The outlook for energy prices, while highly volatile, currently stands close to the baseline of the June Eurosystem staff projections and well above the levels recorded prior to the conflict in the Middle East. Uncertainty remains high and the full inflationary impact o...
Credit standards tightened moderately for firms amid higher perceived risksBusiness loan demand rose slightly, while household loan demand decreasedCredit standards tightened most in sectors such as the car industry and energy-intensive manufacturingAccording to the July 2026 bank lending survey (BLS), euro area banks reported a moderate net tightening of ...
