Loan Negotiations and Corporate Liquidity During the Coronavirus Pandemic

In the second quarter, German companies increasingly requested loans from banks. Demand rose in the retail sector in particular. At the same time, companies reported that the banks are acting more restrictively in their credit negotiations. In addition, almost one-quarter of companies in Germany took advantage of liquidity support provided by the state during the coronavirus crisis. Particularly in sectors that were particularly hard hit by the crisis, such as the travel industry or the hotel and restaurant industry, the proportion of companies that needed assistance was significantly higher.