German banks have once again slightly eased their credit standards for loans to enterprises and loans to households for house purchase. These are, in a nutshell, the results of the Bank Lending Survey (BLS) in Germany, which the Bundesbank conducts four times a year.

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.