European Central Bank Vice President Vitor Constancio sees a slight pick-up in demand for credit in the euro zone, he said on Sunday, counting on the ECB's landmark review of top euro zone banks and the recent stimulus steps to turn the economy around. Following the publication of the ECB's banking health check results, Constancio noted that banks may now be more willing to give loans more easily, but he also cautioned that demand for credit was improving only slowly.
"There is some pick up (in demand), but it is still slight," Constancio told Reuters in a TV interview, adding that the ECB also expected banks to take a larger amount in four-year loans in a December offer than in the first round in September.
"All this now can really start to change the environment and we hope it will also change the reality," Constancio said.
The ECB's health check of the euro zone's 130 biggest banks showed 25 failed the exercise at the end of last year with a total capital shortfall of 25 billion euros, but a dozen have already raised 15 billion euros this year to make repairs.
Asked if those lenders that still have capital holes to plug could do so without needing public money, Constancio said: "We expect that they will be able to do so, but of course now it is up to them to come up with their plans."
"The SSM (supervisory body) will work with the banks in order to ensure that the shortfalls will indeed will be orderly and timely covered."