Euro zone companies tapped banks for some vital credit last month as economic activity stopped, forcing them to look for emergency cash to survive, European Central Bank showed.
Lending growth to non-financial corporations accelerated to 6.6 percent in April, its fastest rate in over 11 years, from 5.5 percent a month earlier, the data showed.
Although banks initially appeared to tighten access to credit, a raft of government and central bank measures, from public guarantees to easier collateral rules, has supported lending.
This stood in contrast with the financial crisis of 2008 and the 2011 euro zone debt crisis, when a downturn in economic activity was caused or at least accompanied by a credit crunch, as this chart showed.
The annual growth rate of the M3 measure of money supply accelerated to 8.3 percent from 7.5 percent, beating expectations for 7.8 percent in a Reuters poll.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Household lending growth slowed to 3.0 percent from 3.4 percent.Follow our full coverage of the coronavirus pandemic here.