• Weak bank lending key feature in euro area
  • ECB measures to inject liquidity into banks and markets
  • Credit to remain weak until end of ECB stress tests
  • ECB purchase plan to provide boost for ABS market
  • EU banking union is restoring confidence to sector

ECB and Greek CB head Yannis Stournaras speaking in Slovenia. He says about credit being weak until after the stress tests and he may have half a point. If banks are holding back ahead of the stress tests then we should see a flood of lending after. That said, does that mean that the banks still see a lot of lending as high risk so are holding back?