KfW Credit Market Outlook December 2019
News from 2020-01-13 / KfW Research
Corporate lending: slower growth, more caution
Corporate lending in Germany is losing steam again. According to KfW Research, new lending has resumed its downward trend after a brief interruption. In the third quarter, banks extended 4.6% more loans to businesses and self-employed persons. Although this is still a strong increase, it is well below the 7.0% recorded in the second quarter.
The weak economic outlook, the industrial recession and multiple political uncertainties have dampened the appetite for new loans among both banks and businesses – despite the low interest rate levels. This is slowing down new lending momentum. We expect this trend to continue into the new year.