Total loans growth in the Euro Area accelerates in October
Total loans growth in the Euro Area accelerated in October to 2.6% y/y from 2.2% y/y in the previous month, data by the European Central Bank (ECB) shows. This is the highest level since December 2020. Total loans are calculated as the sum of loans to Insurance corporations and pension funds, other financial intermediaries, households, non-financial sector, government, and non-Euro Area residents. The breakdown of the data reveals that only two components post annual declines: insurance companies and pension funds, on the one hand, and government, on the other, maintaining the trend from the previous month.
The growth rate of the total deposits in the currency union is twice as high as the loans' one, but it decelerated slightly to 5.47% y/y in October 2021 compared to 5.54% y/y in September. Only the deposits to insurance corporations and pension funds register decrease on an annual basis.
The ECB published data for the monetary aggregate M2, whose growth rate stays stable at 7.5% y/y in October.