Many enterprises continue to report difficult credit negotiations with banks. However, in the first quarter the proportion of small and medium-sized enterprises that perceive banks’ behaviour as restrictive fell to 34%. That said, the KfW-ifo Credit Constraint Indicator nevertheless remains close to the peak reached in the previous quarter. The war in Iran is further clouding the risk situation, so that rapid easing of lending conditions is hardly to be expected.

At the same time, companies’ demand for credit in both size classes remains weak. Investment activity has so far failed to gain sufficient momentum. In addition, in recent years SMEs’ willingness to borrow has continued to decline.

KfW-ifo Credit Constraint Indicator Q1 2026(PDF, 159 KB, accessible)

Press release