April Review of bank lending in Germany

The results of the current Bank Lending Survey show, for Germany, that, in the first quarter of 2010, the surveyed institutions tightened their credit standards to varying degrees depending on the line of business. The results of the current bank lending studies show for Germany that, in the first quarter of 2010, the surveyed institutions have tightened their credit standards to varying degrees depending on the direction of the business.

In the case of loans to enterprises, the banks participating in the survey left their credit standards largely unchanged on balance. In the case of loans to enterprises, banks participating in the survey had left their credit standards remained virtually unchanged on the balance sheet. The institutions reported a slight tightening only for long-term loans. Agencies reported a slight tightening only for long-term loans. Sector-specific and firm-specific factors continued to generate more restrictive tendencies, however, as did the general outlook for the economy, albeit to a somewhat lesser extent. Sectoral and firm-specific factors have continued to generate more restrictive tendencies, however, as the general outlook for the economy, although to a lesser extent. Furthermore, the margins for both risk categories were expanded noticeably by the German banks taking part in the BLS. In addition, the field for the risk categories have been expanded considerably through the German banks to participate in the BLS. By contrast, there was a continuation of the trend towards an easing of collateral requirements. On the other hand, it continued trend toward easing collateral requirements. For the first time since 2008, the surveyed bank managers reported a slight decline in demand for loans for enterprises due, among other things, to alternative financing via the capital market. For the first time since 2008, the bank managers interviewed reported a slight decline in demand for loans to enterprises of communication, among other things, using alternative sources of financing in capital markets.

In credit business with households, standards for loans for house purchase were tightened slightly and standards for consumer credit were tightened significantly. In the credit business to households, lending standards for the purchase of homes have been tightened a bit and standards for consumer credit is much tighter. Much as in the previous quarter, the margins for average loans for house purchase were tightened slightly. More than in the previous quarter, the field for an average loans to buy homes have been tightened significantly. By contrast, riskier loans for house purchase and consumer credit in both credit rating categories were again affected by expanded margins. Unlike the risky loans to buy houses and consumer loans in both categories of credit rating again suffered extensive field. At the same time, the surveyed banks were faced with a sharp fall in households' funding requirements. At the same time, surveyed banks faced a sharp decline in household needs funding.

For the second quarter of 2010, the survey participants expect no further adjustments to their standards for lending to enterprises and private residential construction but somewhat tighter standards for lending for consumption purposes. During the second quarter of 2010 survey participants do not expect further changes in their standards for lending to businesses and private housing, but somewhat more stringent lending standards for consumption.

The April survey round again contained additional questions on the impact of the financial crisis on the wholesale funding, capital costs and lending behaviour of the participating banks. Round of surveys in April again contained additional questions about the impact of financial crisis on wholesale funding, capital expenditure and lending behavior of banks-participants. The surveyed responses showed a marked improvement in the opportunities for refinancing in the money and capital markets in the past quarter. Surveyed responses showed greater improvement of opportunities for refinancing in the money and capital markets in the last quarter. As before, however, just under half of the responding institutions observed higher capital costs in the wake of the financial crisis, which also impacted on lending in some areas. As before, however, almost half of the responding institutions of higher capital costs observed by the financial crisis, which also affected the credit in some areas.