Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Economic slowdown is affecting Germany's credit market

14.03.2013
- New lending down 6% in first quarter
- Recovery not expected until second half

The economic slowdown and weak investment activity of the fourth quarter of 2012 has severely impacted on lending growth in Germany at the start of the year. In its current Credit Market Outlook KfW expects a demand-driven decline of 6% in new lending to enterprises and self-employed professionals for the first quarter of 2013 (against the previous year).

New lending had already contracted by 2.3% in the fourth quarter. The situation will remain bleak in spring as well even as the economy picks up because demand for credit, especially for investment loans, only responds to an economic turnaround with a time lag.

"When Germany's upswing stabilises and enterprises invest more, demand for bank loans will also increase again", said Dr Jörg Zeuner, Chief Economist of KfW Bankengruppe. "Since there are no apparent restrictions on the supply side and access to credit remains good in general, I expect the trend to reverse and lending to pick up from the middle of the year."

The economic weakness at the end of last year and the significant decline in long-term project financings recently had a restraining influence on lending growth. Despite high investment requirements, the volume of launched projects dropped significantly in 2012.

For enterprises in search of finance, access to credit continues to be very good. There are no signs that banks are significantly tightening their lending criteria. Funding conditions also provide no grounds for German banks to restrict their credit supply because enough liquidity is available.

This is not affected by the end of the flight of Southern European deposits to Germany either. The development of the Target2 balances since autumn of 2012 shows that capital flows have reversed. Even if this is a sign that the euro crisis is starting to abate, southern Europe continues to suffer from a credit crunch that has to be fought vigorously.

The current edition of the KfW Credit Market Outlook is available in the Internet at www.kfw.de/kreditmarktausblick.

Pressekontakt:
KfW,
Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM) Christine Volk
Tel. +49 (0)69 7431 3867, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de

Christine Volk | presseportal
Further information:
http://www.kfw.de

Further reports about: Credit Credit Market Outlook KfW KfW Bankengruppe Outlook economy picks

More articles from Business and Finance:

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

nachricht Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

Im Focus: MADMAX: Max Planck Institute for Physics takes up axion research

The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.

The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...

Im Focus: Molecules change shape when wet

Broadband rotational spectroscopy unravels structural reshaping of isolated molecules in the gas phase to accommodate water

In two recent publications in the Journal of Chemical Physics and in the Journal of Physical Chemistry Letters, researchers around Melanie Schnell from the Max...

Im Focus: Fraunhofer ISE Develops Highly Compact, High Frequency DC/DC Converter for Aviation

The efficiency of power electronic systems is not solely dependent on electrical efficiency but also on weight, for example, in mobile systems. When the weight of relevant components and devices in airplanes, for instance, is reduced, fuel savings can be achieved and correspondingly greenhouse gas emissions decreased. New materials and components based on gallium nitride (GaN) can help to reduce weight and increase the efficiency. With these new materials, power electronic switches can be operated at higher switching frequency, resulting in higher power density and lower material costs.

Researchers at the Fraunhofer Institute for Solar Energy Systems ISE together with partners have investigated how these materials can be used to make power...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

UTSA study describes new minimally invasive device to treat cancer and other illnesses

02.12.2016 | Medical Engineering

Plasma-zapping process could yield trans fat-free soybean oil product

02.12.2016 | Agricultural and Forestry Science

What do Netflix, Google and planetary systems have in common?

02.12.2016 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>