ECB to keep eye on fragmentation and credit growth

While the net take-up of the ECB's TLTRO programme has been broadly in line with the expectations, the recovery in bank lending (and business investment) remains lacklustre. Looking at the flow of credit, the credit impulse may yet disappoint to support stronger growth, says Societe Generale. 

The ECB is likely to continue struggling with its optimistic views of a sizeable recovery in investment over the coming years, something for which analysts expect much more leadership from politicians will be needed.