KfW-ifo Credit Constraint Indicator July 2020

Businesses of all size classes are finding it more difficult to access credit in the coronavirus crisis.

The KfW Ifo Credit Constraint Indicator has reached the highest level since the survey methodology was revised in 2017. More than one fifth of SMEs reported that banks were restrictive in loan negotiations in the second quarter of 2020. However, large enterprises also have to surmount growing obstacles when accessing credit.

But in view of the significantly increased loan default risks due to the deep recession, the difficulties in accessing credit are still limited. This contrasts with the global financial crisis of 2009, when more than 40% of the small and medium-sized manufacturing firms surveyed by the ifo Institute perceived banks’ lending policy as restrictive. The situation today is not just due to the greater resilience of the banking sector but also to the comprehensive economic support packages.

KfW-ifo Credit Constraint Indicator July 2020(PDF, 146 KB, non-accessible)

Press release