High corporate debt ratios in some countries may still be a partial cause of the weak developments in corporate borrowing and investment. The more relaxed financing conditions for non-financial corporations and the reasonable level of indebtedness in the euro area’s corporate sector should, however, provide fertile ground for recovery in investment.
Many credit unions understand and support the rationale behind the Central Bank as prudential regulator of the entire credit union sector, although it seems that there may still be some low notes against change and regulation. Some may argue the industry has survived, grown and done very well for itself with a “litetouch” regulatory approach.