Teunis Brosens, Senior Economist at ING, notes that the Eurozone’s survey shows bank lending picking up, but corporate investment still lagging behind. Key Quotes “As the debate about the effectiveness of QE and negative rates rages on, the Bank Lending Survey provides some useful indications about the development of lending to the real economy. Banks continue to report increasing loan demand, especially from households. Moreover, credit standards on business loans were eased for the ninth quarter in a row, as banks are increasingly competing with other lenders. But rather disappointingly, demand for business loans to finance investment projects eased somewhat, casting further doubt on the strength of Eurozone investment. Today’s figures provide some comfort to the ECB that its controversial policies are having a positive effect on bank lending. At least households are clearly finding the way to cheap mortgage credit. The central bank can also argue that with business lending losing some momentum, its decision last month to do even more is corroborated. At the same time, banks report that while QE and negative rates cause them to increase their lending volumes, these policies are also negatively impacting profitability. But banks need not fear this week’s ECB meeting. After last month’s additional measures and the critical reaction they received in particularly Germany, it is highly unlikely that the ECB will announce additional measures this Thursday. Instead, ECB-president Draghi will probably respond to his critics by repeating that ECB policies are directed at the Eurozone as a whole, which means that they are not necessarily optimal for individual countries.” For more information, read our latest forex news.