FX.co ★ Eurozone Household Lending Grows at Fastest Pace in Two Years

In May 2025, bank lending to households in the Eurozone increased by 2.0% year-on-year, reaching EUR 7.002 trillion. This marks the fastest growth rate since May 2023 and aligns with market expectations. This uptick is indicative of a sustained rebound in credit demand, bolstered by the European Central Bank's recent policy easing measures. Conversely, lending to businesses experienced a slight decline to 2.5%, down from 2.6% in April, which had been at a nearly two-year high. Consequently, the overall credit expansion to the private sector, including both households and non-financial corporations, remained stable at 2.8%, the most robust growth observed since May 2023.