With the second round of the LTRO program, the ECB has managed to slightly improve liquidity in the Eurozone. This is evidenced by the growth in M3, the broad money stock. But as discussed before, this liquidity is not translating into area-wide improvements in the overall credit conditions. In fact the trend in lending to the private sector has completely diverged from M3.
|Eurozone M3 vs loans to the private sector (source: GS)|