News from 2020-09-01 / KfW Research

KfW Credit Market Outlook: September 2020

The profound shock of the corona crisis has thrown many companies into distress. With their continuously strong lending, Germany's banks and savings banks are making an important contribution to overcoming the economic slump.

According to calculations by KfW Research, the growth of new lending to businesses and self-employed persons in Germany hardly slowed during the second quarter and remained on a high level, increasing by 6.0% year-on-year. The fact that long-term loans in particular were granted is good news for the stability of the economic recovery. Businesses have likely focused on ensuring the survival of their operations, while capital expenditure slipped into the background.

We expect economic momentum to slow in the further course of the year. The ongoing economic recovery is easing the pressure on the liquidity situation, while demand for investment loans should remain weak for some time to come.

KfW Credit Market Outlook: September 2020

Press release

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