FRANKFURT (MNI) – A credit crunch is not on the horizon in Germany,
a survey conducted by the country’s central bank revealed Wednesday.
The results, released at the same time as the European Central
Bank’s quarterly Bank Lending Survey, said there was no need to fear
that loans to non-financial corporations would tighten as the German
economy turns around.
The survey, conducted this month, “produced no indication of a
looming credit squeeze,” the German central bank reported. “Thus, banks
are not communicating fear of a too-tight credit supply for the German
economy as the economic recovery continues.”
In total, the surveyed German banks and banking associations expect
an increasing credit volume over the next twelve months that will mainly
be carried by credit to small and medium-sized companies, the Bundesbank
said.
Companies of this size, the so-called “Mittelstand,” are the
historic backbone of Germany’s economy.
The ECB’s survey showed that banks in the Eurozone as a whole
tightened credit standards to businesses in the midst of the EMU
sovereign debt crisis.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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