News from 2023-05-02 / KfW Research

KfW-ifo Credit Constraint Indicator Q1 2023

Credit constraints decreased at the start of the year

German businesses are able to access credit more easily again. The KfW-ifo Credit Constraint Indicator for the 1st quarter of 2023 is considerably below the previous high levels. Still, one quarter of small and medium-sized enterprises still perceive the behaviour of banks in loan negotiations as restrictive. Credit access therefore remains more difficult than average. The easing of lending policies is mainly attributable to the deescalation of the energy crisis. Loan defaults become less likely as a result of the improved economic risk situation.

KfW-ifo Credit Constraint Indicator Q1 2023

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