News from 2026-04-21 / KfW Research

KfW Credit Market Outlook April 2026

Uncertainty and the energy price shock are slowing the revival in lending

New lending by German banks to enterprises and the self-employed was curbed in late 2025 by a decline in corporate investment. New lending grew by only 1.4% year on year in the fourth quarter.

The sharp surge in energy costs is exacerbating inflation risks and increasing upward pressure on lending rates. This also changes the outlook for corporate lending: Instead of the hoped-for investment-led recovery, new lending is likely to be driven primarily by the need for additional liquidity to cover higher operating and intermediate input costs. KfW Research expects new lending to accelerate in the second quarter.

KfW Credit Market Outlook April 2026

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