Further slowdown of credit growth
Statistical News Release
| Date | 29 January 2010 |
Year-on-year growth in lending by Dutch banks declined further during December 2009. Compared to the preceding month, lending to non-financial corporations in the Netherlands came down by EUR 4.3 billion. This means that redemptions of credit more than offset new lending. This emerges from the latest monetary data released by DNB.
Corporate lending by Dutch banks had already fallen slightly (EUR 700 million) in November last year. This development continued in December; the decrease in outstanding corporate credit relative to November 2009 worked out at –1.3%. The December decrease can be attributed to loans with a maturity of one year or less (fall of EUR 5 billion). Such loans are notably intended for inventories and working capital. In contrast, long-term loans (with a maturity of more than 5 years) increased by just over EUR 1 billion in December (matching the monthly average in 2009).
Most of the decline in the last month of the year is due to seasonal effects. By repaying loans, enterprises reduce their debt position on the end-of-year balance sheet. This mainly applies to current account credit facilities, which enterprises can redeem flexibly.
For further information, please contact Tobias Oudejans, tel. +31 20 524 3100 or +31 6 524 96 961, or Herman Lutke Schipholt, tel. +31 20 524 2712 or +31 6 524 96 900.
