Banks Less Reluctant to Lend to Companies in Germany

It has become easier for German companies to obtain new loans. In March, 22.7 percent of companies in ongoing credit negotiations reported restraint on the part of banks. In December, that figure was 30.0 percent. This is a finding of surveys by the ifo Institute. “The turbulence at some international banks is having no impact on lending in Germany,” says Klaus Wohlrabe, Head of Surveys at ifo.

“Companies are also gradually getting used to the new interest rate environment,” he adds. The decline in the ifo Credit Constraint Indicator was mainly attributable to manufacturing (from 27.8 percent to 17.3 percent) and service providers (from 34.6 percent to 26.5 percent). The figures for wholesale and retail trade (15.9 percent and 22.1 percent, respectively) and construction (26.9 percent) remained virtually unchanged.

Microenterprises and the self-employed continue to be considerably more affected. Here, around 40 percent of companies reported that it is hard to obtain loans. In the event industry, the figure is as high as 50 percent.