Similarities and differences with the ECB’s BLS
If we compare these indicators with the readings we took months ago from the European Central Bank’s (ECB) Bank Lending Survey (BLS), we can identify similarities and differences in the findings. For example, both reports agree on the tightening of lending activity in the euro area. In terms of mortgage lending, both the EY forecast and the ECB survey point to a tightening of mortgage lending conditions in the euro area. Both reports also agree that this tightening has been more pronounced than in consumer lending, due to perceptions and low risk tolerance.
However, there are some differences in the details. While the previous article highlights the slowdown in loan hardening between the fourth quarter of 2022 and the first quarter of 2023, the consultant’s forecast does not provide specific data on this aspect, and in any case points to activity potentially continuing at lower volumes of activity than at present. In any case, both reports offer a valuable perspective, and it is beneficial and necessary to consider different sources in order to have a complete understanding of lending activity in Europe.
The current situation of credit tightening and rising non-performing loans presents opportunities for companies such as GDS Modellica, which specialises in banking decision technology. These companies can offer innovative solutions to help financial institutions mitigate risk, detect fraud and optimise loan origination and collection processes.
GDS Modellica’s commitment
Advanced technology, led by data analytics, predictive modelling and task automation, can improve efficiency and accuracy in these key areas. By providing effective tools to make informed decisions, these companies can support the banking industry in its quest for stability and sustainable growth, regardless of the economic and credit challenges ahead.
In conclusion, the forecast we have reviewed on this occasion highlights a picture of hesitant growth in bank lending in the Eurozone, amidst challenges related to high interest rates and inflation. Although facing challenges, the banking industry can count on the support of corporate.