Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Why Eurozone Rate Cuts Are Not Helping Small Business
The ECB cut rates again in June. Yet business lending to small and medium enterprises across the eurozone is actually shrinking. In this episode, Lucas and Luna examine why the transmission mechanism is broken. They look at the specific case of German SMEs — the Mittelstand — which face tighter credit conditions despite lower benchmark rates. Data from the ECB's Bank Lending Survey shows banks are tightening standards on loans to small firms even as they loosen for large corporates. The hosts also connect this to the diverging performance of German and Italian equity ETFs: the German EWG…
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