EY expects more loan defaults and less home loans in 2023

Frankfurt According to a study, high energy prices and weakening demand will significantly slow down lending in the coming year. Business loans would drop in a particularly marked way, according to the “European Bank Lending Forecast” analysis by the consulting firm EY.

After business loans grew to a record 7.3% this year, they are expected to decline by 2.9% in 2023. This puts Germany below the eurozone average, where a less by 2.7 percent.

“Germany is particularly affected by this crisis because it has to solve structural problems, especially in the manufacturing sector, which until recently depended on cheap energy imports from Russia,” says Robert Melnyk, Head of Banking and Capital Markets at EY Financial Services.