German Companies Face Increasing Credit Access Challenges

Economic stagnation leads to stricter bank lending practices, affecting industrial firms the most.

34.5% of large German companies report difficulties in obtaining credit, marking a significant increase from previous quarters.
The KfW-Ifo credit hurdle index has reached a new high, reflecting tightened lending conditions.
Industrial firms are particularly affected, with over 40% experiencing restrictive banking behavior.
Mid-sized businesses also face increased hurdles, with 31.5% reporting challenges in securing loans.
The demand for new credit has decreased across both large and smaller companies, reversing previous recovery trends.