Eurozone bank lending to industry fell again in November, the European Central Bank reported on Wednesday, underlining the fragility of the recovery in the common currency area.

Loans to non-financial institutions fell at an annual rate of 1.9% last month after shrinking 1.2% in October, the central bank said.

The ECB said the annual rate of change of M3 - - a broad measure of money and credit in the Eurozone  --  decreased to -0.2% in November 2009, from 0.3% in October 2009.

The three-month average of the annual growth rates of M3 over the period September 2009 - November 2009 fell to 0.6%, from 1.6% in the period August 2009 - October 2009.

The annual growth rate of total credit granted to Eurozone residents decreased to 2.5% in November 2009, from 2.9% in the previous month. The annual rate of growth of credit extended to general government decreased to 13.3% in November, from 15.2% in October, while the annual growth of credit extended to the private sector stood at 0.4% in November, compared with 0.5% in the previous month. Among the components of the latter, the annual rate of change of loans to the private sector was -0.7% in November, after -0.8% in the previous month (adjusted for loan sales and securitisation the annual growth rate of loans to the private sector decreased to 0.1%, from 0.3% in the previous month).

The annual rate of change of loans to nonfinancial corporations decreased to -1.9% in November, from -1.2% in October. The annual growth rate of loans to households increased to 0.5% in November, from -0.1% in the previous month. The annual rate of growth of lending for house purchase increased to 0.3% in November, from -0.2% in the previous month.

The ECB said the annual rate of change of consumer credit increased to -1.0% in November, from -1.3% in October, while the annual growth rate of other lending to households increased to 2.5% in November, from 1.6% in the previous month. Finally, the annual rate of growth of loans to non-monetary financial intermediaries (except insurance corporations and pension funds) increased to 0.3% in November, from -1.4% in the previous month.

Over the 12 months up to November 2009, the net external asset position of the Eurozone financial sector sector increased by €58 billion, compared with an increase of €62 billion over the 12 months up to October.