The banking association expresses concern about the low demand for corporate loans.
The companies in Germany continue to invest hesitantly. As a result, the demand for credit remains weak, according to the German Association of Banks (BdB). A turnaround is not expected in the second half of the year. The total volume of outstanding loans in the second quarter was only 0.3 percent higher than the previous quarter, amounting to 1,140 billion euros.
CEO Heiner Herkenhoff expects a positive development with the rapid implementation of the Growth Opportunities Act decided by the federal government. The planned measures there could provide investment impulses for small and medium-sized enterprises. At the same time, he warned: „However, it must be ensured that no new bureaucracy is created. We need stronger incentives for the economy, and bureaucracy in particular is often a hindering factor.“
According to the association, the banks have significantly relaxed the criteria for granting loans compared to previous quarters. However, the ECB interest rate hikes have led to a significant increase in interest rates for new corporate loans. A recent ECB survey shows that the climate-friendly transformation of business models could have an increasing influence on financing. Herkenhoff commented on this, saying, „This is a positive incentive because the economy should transform and become more sustainable.“ The banks are ready to provide financing.