Reluctance to lend ‘slowing recovery’

LENDING by Irish financial institutions continued to fall in April, reflecting poor demand from both businesses and consumers and a reluctance by the banks to provide credit.

That reluctance could slow the pace of economic recovery, warned Alan McQuaid, economist with Bloxham Stockbrokers.

While demand has been “muted” for some time, lending data for April maintains the concern that the Euroland/Irish economic recovery could be damaged.