Munich (dts) – It is becoming more difficult for companies to get new loans. 29 percent of those companies that are currently conducting negotiations reported reluctance on the part of banks in September, compared to 21 percent in June, according to surveys by the Ifo Institute.
“The banks are gradually increasing loan interest rates and are becoming more cautious about lending,” said Klaus Wohlrabe, head of the Ifo surveys, on Monday. “In economically weaker phases, companies also have to contribute more to securing loans,” he added. The increase was primarily attributable to service providers and industry, where the proportion of companies having problems with borrowing rose from 22 to 31.5 and 21 to 28 percent, respectively. Among manufacturers of electrical equipment, almost 40 percent of companies report reluctance from banks.
In mechanical engineering the proportion is almost 32 percent. Due to the difficult situation in housing construction, banks are also cautious about companies in the real estate and housing sector (31 percent). In the events industry the proportion is around 35 percent. In retail, the share also rose from 20.5 to 28 percent.
The economic situation of many retailers remains difficult due to the reluctance to buy. This is also reflected in the lending conditions. The same applies to the construction industry, where 29 percent (after 27 percent in June) reported restrictive lending. Only in wholesale there was a decline from 23 to 20 percent.
Photo: Skyline of Frankfurt / Main (archive), via dts news agency
2023-10-23 05:47:15
#Banks #cautious #lending #osna.live
