Business with new corporate loans is stagnating

Financial district in Frankfurt

The higher interest rates could reduce demand for long-term loans in particular.

(Photo: dpa)

Frankfurt The record-breaking growth in new loans to German companies and the self-employed is likely to come to a standstill in the spring. This emerges from the latest credit market outlook, which the state development bank KfW calculates exclusively for the Handelsblatt. According to the data, growth in the first quarter fell to three percent compared to the same period last year, and KfW is forecasting stagnation in the second quarter.

To determine new lending, KfW analyzes the changes in the loan portfolio collected by the Bundesbank on a quarterly basis and makes assumptions about scheduled repayments, i.e. loan repayments, since these must be taken into account. The KfW calculates housing loans and loans to insurers and financing institutions from the Bundesbank data.

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