“The difficult economic climate is currently making banks more cautious”, Klaus Wohlrabe, Head of Studies at ifo, said in a press release. “Without new loans, some businesses could struggle for economic survival.”
Among service providers, no less than 28.8% of companies looking for credit say that banks are reluctant to lend. In the manufacturing sector, about 8.4% of companies applying for credit in the chemical industry and 22.5% of those applying for credit in the automotive industry reported difficulties. In commerce, however, the figure was slightly lower at 15% of such businesses.
Businesses in Germany find it harder to get new loans. Currently, 24.3% of companies in ongoing credit negotiations are reporting restraint from banks – the highest proportion since 2017 in Germany, according to the ifo institute. Among service providers, 28.8% of businesses seeking credit say banks are reluctant to lend.
Nevertheless, it is the micro-enterprises and the self-employed who are the most affected. Around one in two businesses looking for credit here said it was difficult to get loans. “For micro-enterprises, other forms of financing such as bonds are more difficult or impossible to use. They often depend on bank loans,” Wohlrabe said.
Fibre2Fashion News Office (NB)