Collapsed banks in the US, Credit Suisse in trouble – does that endanger lending here? The banking association reassured: Even more financing was granted in the first quarter.
Germany’s private banks do not see any negative effects on local lending after the recent turbulence on the banking markets in the USA and Switzerland.
The Federal Association of German Banks (BdB) states in its quarterly report on corporate financing that lending by financial institutions in Germany is “reliable and stable”. Compared to the previous quarter, lending by all banks rose by 0.5 percent and that of private banks by 2.2 percent in the first quarter of the current year.
In the USA, three regional banks had collapsed since the beginning of March after enormous withdrawals of funds due to liquidity concerns. In Europe, the major bank Credit Suisse, which had previously had problems, was saved from collapse thanks to a state-organized emergency takeover by the larger UBS. A problem for the institutes: the rapidly increasing interest rates after years of zero and negative interest rates.
Banking Association: Stricter rules have proven their worth
The financial market in the European Union, on the other hand, “proved to be very robust,” writes the BdB. The stricter rules introduced after the 2007/2008 financial crisis have proven their worth. “This is a key reason why no negative effects on corporate financing can be observed in Germany. Possible concerns about refinancing or restricted lending are therefore unfounded.”
The banks’ supply of financing is greater than demand, summarized BdB general manager Heiner Herkenhoff: “Companies have no problem getting fresh money for investments. The supply is there.”
Source: Stern
