Chart of the Day: Money supply up, but lending goes down

Importers and exporters are the latest to suffer from a retrenchment in bank lending, as banks pull the plug on trade financing

Despite a second LTRO boost, private loans in the eurozone have fallen steadily, with importers and exporters the latest to suffer as banks pull the plug on trade financing, according to research from US banks.

Broad money supply in the eurozone has increased since the European Central Bank's second long-term refinancing operation in February, but the number of loans to the private sector has continued to fall, as this chart from Goldman Sachs demonstrates.

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