DrLast year, credit banks in Germany felt the effects of people's reluctance to consume in light of rising prices. Institutes specialized in financing consumer and capital goods granted consumer loans with a total value of 52.7 billion euros to private sector clients. This was 7.3 percent lower than a year earlier, according to the Banking Association on Wednesday.
Less money for free use
In particular, the demand for cash loans for free use, which are often obtained via the Internet, has decreased. Private car financing decreased slightly by 1.1 percent.
On the other hand, credit banks increased investment financing for companies by 7.3 percent to 11 billion euros. Commercial vehicle loans increased by 12.3 percent. Overall, the value of new loans last year amounted to 127.3 billion euros. This corresponds to a slight decrease of 0.5 percent compared to the previous year.
“In light of the difficult economic situation and the low consumer climate, this is a satisfactory result,” said Christian Rubin, president of the Banking Association.
The association's regulated institutional loan portfolio increased by eight percent to reach 195.5 billion euros as of December 31, 2023.
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