Euro zone lending slows again in Feb, ECB says

FRANKFURT, Mar 27 (Reuters): Bank lending to euro zone companies slowed for the fourth straight month as an economic downturn and increased caution from lenders appear to be taking their toll, European Central Bank data showed on Monday.

Lending to businesses in the 20 nation currency bloc expanded by 5.7 per cent in February after a 6.1 per cent rise a month earlier while household credit growth slowed to 3.2 per cent from 3.6 per cent.

Lending has slowed sharply in recent months on an economic downturn and the fastest rate hikes by the ECB on record.

The monthly flow of loans to companies was a negative 2.6 billion euros after a mere 1.4 billion euro expansion a month earlier. Growth in the M3 measure of money circulating in the euro zone meanwhile slowed to 2.9 per cent from 3.5 per cent.