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EU Banking Shares Surge in January Despite Poor Lending Environment
Posted on February 01, 2012 at 08:20 AM EST
Five Star Equities Provides Stock Research on The Bank of Ireland & Deutsche Bank
NEW YORK, NY -- (Marketwire) -- 02/01/12 -- Eurozone banking stocks performed well last month as financial firms tapped European Central Bank (ECB) emergency funding. According to a report from The Financial Times, several of the largest Eurozone banks may double or even triple their request for funds at the ECB's three-year money auction on Feb. 29. Banks borrowed EUR 489B in the emergency funding scheme's debut auction in December, the Financial Times reports. Five Star Equities examines investing opportunities in the Foreign Banking Industry and provides equity research on The Bank of Ireland (NYSE: IRE) (LSE: BKIR) (ISE: BIR) and Deutsche Bank AG (NYSE: DB). Access to the full company reports can be found at: According to a recent report from The Wall Street Journal, Euro-zone bank lending growth slowed dramatically in December, "a sign that economic activity will remain subdued and inflation depressed in the region, opening up room for further rate cuts." Data from the European Central Bank showed that loans to the private sector grew at a 1% annual rate in December, down from 1.7% in November and 2.7% in October. Economists had forecast growth of 2.1%, MarketWatch reports. Five Star Equities releases regular market updates on the Foreign Banking Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.fivestarequities.com and get exclusive access to our numerous stock reports and industry newsletters. Recent figures from Ireland's central bank show that lending continues to stagnate in the country. Lending to households declined by EUR 90 million on a month earlier, following a fall of EUR 363 million in November. Meanwhile, loans to non-financial businesses decreased by EUR 665 million during December 2011, following an increase of EUR 39 million in November. At the end of December, their aggregate bank borrowings stood at EUR 88 billion. The Irish Times reported that borrowings by banks in Ireland on longer-term loans from the European Central Bank rose by EUR 4.5 billion in December when the Frankfurt bank offered European financial institutions three-year loans at a rate of just 1 per cent for the first time.
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