Although the total number of banks on loans to households be at the lowest level in eight years, the new consumer credit has been recovering and the new funding hit as early as 2015 maximum number of years. Only in June, they were awarded credits to buy consumer goods worth 409.382 million euros, 21.5% more than in the same month of 2014.
According to Rui Barbara, an economist at Banco Carregosa as in modern economies the credit cycles are closely linked to economic, there are naturally a recovery of loans now that the economy starts to energize.
“We passed the credit contraction phase (coming with recessions) to stage the largest lending, typical of the end of the recession and that feeds the very recovery of GDP [gross domestic product]. The very availability of banks to lend more, as desired the ECB [European Central Bank ], is an indicator of proximity to the cycle of change, “summarized the analyst of this investment bank.
Also Filipe Garcia, Information on Financial Markets (IMF), justifies this increase in loans to individuals with the fact that the families that “deferred consumption” during the worst years of the crisis, “come back now to want to consume, particularly durable goods, and are more confident about the future.”
However Filipe Garcia believes that, although there are still “more prudence of banks” in lending to households, “is merely a matter of time before turning to some laxity in consumer credit.”
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