boom without end? German banks rely on construction financing

Frankfurt Despite rising interest rates and stricter requirements from the financial supervisory authority Bafin, important German banks are expecting a boom in the mortgage lending business again this year. This shows a survey by the Handelsblatt among eight major credit institutions. Housing loans are important for the business success of many institutes, but bank supervisors warn of increasing risks in the real estate market.

Financial institutions such as Deutsche Bank, Commerzbank, ING, Hypo-Vereinsbank and Hamburger Sparkasse expect “continued high demand” and are optimistic about the prospects for this year. Deutsche Bank expects “continued very good business development”, ING speaks of “good business development”. Only Commerzbank reports that growth has “reduced somewhat” this year.