ECB’s easing started reaching to real economy

European Central Bank's massive quantitative easing finally might be serving the purpose, to move the benefits of the program to the real economy.

Latest survey by European central bank shows -

• Credit conditions across Euro zone has eased considerably. Credit standards to enterprises and consumers saw experienced easing, whereas credit standards tighten on housing loans.
  
  
• Significant improvements are register since the announcement of the program in banks' risk tolerance, risk perception.
  
  
• Loan rejection rates dropped across region, Italy registered drop of more than -12% in 1^st quarter, followed by Germany around -10%. However it remained unchanged for France, Netherlands and Spain.
  
  
• Most importantly, Euro Area banks have indicated that they have used this additional liquidity provided by ECB asset purchase program towards granting loans the most, followed by refinancing and purchasing assets.

Breaking the granted loans and refinancing shows encouraging picture for Euro area enterprises.

• Banks increased loan gratings using additional liquidity arising from both sale of marketable securities and increased customer deposits. Highest portions of the loan are being granted towards enterprises.
  
  
• Banks are expecting 35% of the loans to go towards enterprises, whereas 25% to consumers and 23% towards house purchase over the next six months.

European companies will reap the most benefit out of this ECB program, hence their stocks remains very attractive to invest in, with weaker Euro making price cheaper for foreign investor.