The banks repeatedly eased their credit standards and terms and conditions in all three surveyed loan categories. They again adapted credit terms and conditions mainly by narrowing margins irrespective of borrowers’ creditworthiness, albeit to a smaller extent than in the preceding quarter. Demand for loans to enterprises and loans to households for house purchase picked up considerably, with demand for consumer credit and other lending in fact rising sharply.

The Bundesbank estimates that the German economy gained somewhat more momentum in the second quarter of 2018 than it had at the beginning of the year. This was due not only to stronger industrial activity but also to the ongoing construction boom and private consumption.

The Financial Stability Review outlines the Bundesbank's assessment of the resilience of the German financial system and analyses the risks to financial stability.