On May 13 local time, ABN Amro CEO Marguerite Bérard stated that the interest rate hikes by the European Central Bank (ECB) are not expected to weaken credit growth momentum or force borrowers to shift towards the private credit market.
During a media briefing held that day, Bérard elaborated on her latest assessment of monetary policy. She indicated that ABN Amro expects the ECB to implement a cumulative 50-basis-point rate hike this year, with a potential transition to a rate-cutting cycle by 2027. Bérard emphasized that this forecast differs from the prevailing market view reflected in the forward rate curve, which anticipates a more prolonged impact from ECB policy. The bank's projection is primarily based on its assessment that the global geopolitical landscape will normalize next year.
Regarding credit operations, Bérard noted that the current pace of rate increases is insufficient to alter borrowers' financing preferences. Financial report data shows the bank's corporate loan portfolio continued to expand in the first quarter, with new lending reaching €1.5 billion. She believes that, although private credit and private debt funds have grown rapidly since the 2008 financial crisis due to their efficiency and customization advantages, traditional bank credit remains robust and resilient in the current environment.
Comments