Home » Bundesbank study: demand for credit is stabilizing

Bundesbank study: demand for credit is stabilizing

by admin

The weaker economic outlook has led to fewer people applying for consumer loans. In the last quarter of 2023, demand stabilized somewhat again. This is shown by the Bundesbank’s latest survey on lending business among 33 German banks.

Consumer credit remains stable

The Bundesbank regularly asks whether the banks are changing their rules for granting loans, what conditions they agree to in the loan agreements and how high the demand for loans is. It breaks down the results into consumer loans, construction financing and corporate loans.

Demand for consumer loans remained relatively stable despite a small decline of minus four points. Demand for housing loans fell by seven points and for business loans by 16 points.

Interest rates are becoming less important

The reasons for the lower demand have changed. “For the first time since the beginning of the monetary policy tightening phase, the general level of interest rates in all three credit segments was only the second most important factor for the decline in demand for credit in Germany,” reports the Bundesbank. Consumer reluctance to purchase in view of the deteriorating economic outlook had a greater impact. Many people interested in building financing are waiting to buy real estate because they expect prices to continue to fall. The banks surveyed expect a further slight decline in loan demand in the next three months. In view of the unfavorable economic situation and new legal requirements, banks are planning stricter lending rules in the next twelve months.

Financing tips in uncertain times

For Oliver Maier, Managing Director of Verivox Finanzvergleich GmbH, the current results are in line with expectations. “Those interested in loans should prepare for the fact that banks will check more closely in the next few months than before,” is Maier’s assessment.

See also  Highway 50 in Ponte Serra reopened to traffic

Especially in economically uncertain times, it is more important than ever to plan financing projects carefully and compare conditions critically, recommends the financing expert and says with regard to interest costs: “If you pay attention to low interest rates when looking for a loan, you will benefit from a lower monthly rate and has more financial buffer in unfavorable times.”

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy