Germany – domestic private sector loan growth

In addition to lending to
the private sector, banks also raised their hold-
ings of privately issued securities, which they
had reduced considerably in the preceding
quarters.

Lively demand from households for
loans for house purchase was once again the
key factor driving the ongoing expansion in
loans to the private sector.

By contrast, mo-
mentum in lending to domestic non-financial
corporations sagged somewhat in the quarter
under review following three fairly strong quar-
ters. According to the banks participating in
the Bank Lending Survey (BLS), this is probably
because companies have ample scope for in-
ternal financing.