In the third quarter, German banks ease their lending standards for enterprises somewhat. SMEs and large enterprises report less restrictive negotiations, but barriers to accessing credit remain high by historical standards. In particular, high interest rates make borrowing unattractive for many enterprises.

While larger firms are once again holding talks about loans more frequently, SMEs remain reluctant to take out new loans. Economic uncertainty in particular, along with concerns about taking on additional debt, is curbing demand.

It remains to be seen over the rest of the year whether the recent easing of lending policies is sustainable. This requires a sustained economic recovery.

KfW-ifo Credit Constraint Indicator Q3 2026(PDF, 123 KB, accessible)