German credit data: Business investment willingness declines

In the first half of 2025, the overall new loan business in Germany's bank credit remained stable, but the decline in corporate investment willingness led to a significant drop in corporate financing loans.

The German Credit Banking Association released a report on Wednesday (September 17th) showing that in the first half of the year, the amount of new loan business in German banks was 66.7 billion euros, increasing slightly by 0.3% year-on-year. Among them, the new loans in the consumer loan business reached 30 billion euros, increasing by 4.2% year-on-year. The development of corporate financing business was sluggish, with new loan business amounting to 5.2 billion euros, a year-on-year decrease of 6.6%.

From a specific perspective, the motor vehicle loan business also reflects a decline in corporate investment. In the first half of the year, the total amount of motor vehicle loans issued by German credit banks to private individuals and enterprises was 11.9 billion euros, a year-on-year decrease of 1.3%. Among them, the personal passenger car loan business remained stable, increasing slightly by 1.1% to 9.3 billion euros. The company's vehicle financing business dropped sharply by 9.2% to 2.6 billion euros.

Xinhua News Agency quoted Jens Loa, the managing director of the German Credit Banking Association, as saying that bank credit is a barometer of the economic situation. If enterprises cut investment and consumer confidence remains low, it will drag down the economic development of Germany. If the German economy is to return to a sustainable growth track, the government needs to start promoting structural reforms to gain growth momentum.