Ifo: Despite the bank tremors, companies can access loans more easily
Despite concerns about a new financial crisis as a result of the turbulence surrounding the Silicon Valley Bank and Credit Suisse, German companies are not feeling the credit crunch. On the contrary: it has even become easier for them to obtain new loans. Only 22.7 percent of those companies that are currently conducting negotiations reported reluctance on the part of the banks in March, as the Munich Ifo Institute announced on Friday in its quarterly survey. In December it was still 30.0 percent.
“The turbulence at some international banks has had no effect on lending in Germany,” said Klaus Wohlrabe, head of Ifo surveys. “Companies are also gradually adjusting to the new interest rate environment,” he added. Since the European Central Bank (ECB) is combating high inflation with rising key interest rates, borrowing costs have risen noticeably in recent months.
The decrease in credit constraints is also due to industry. The proportion of businesses complaining about reticent banks in March fell from 27.8 to 17.3 percent. There was also a noticeable decline among service providers, from 34.6 to 26.5 percent. In wholesale, retail and construction, the figures have remained almost unchanged.
“Micro-enterprises and the self-employed continue to be affected much more severely,” the Ifo researchers found. Around 40 percent of the companies reported that it is difficult to get credit. In the event industry it is even 50 percent.