Lending Blows Through the Roof! Corporate Lending Update April 2022
German Corporate Lending Growth Hits Record High of 7.9% YoY
German lending data for April 2022 is just out and the data print for the corporate category is frankly spectacular:
Corporate loan growth further accelerated to 7.9% YoY. This is just marginally the below pre-financial crisis high of 8.6% and by far the highest value since then. It is also eclipsing the seasonal COVID-19 high of 6.2% from May 2022. Also remarkable: Annual growth was just 0.9% in June 2021, less than a year ago.
There are a number of reasons for currently skyrocketing corporate loan demand such as surging inflation for raw materials and industrial products, the war in Ukraine as well as the end of state-supported COVID-19 loan facilities in April (at very attractive rates!) and pre-funding ahead of potentially rising interest rates.
Let’s see how May shapes up.
