Foreign Credit

November 2019

Foreign banks in Germany have the highest growth rates in terms of commercial credit lines. That’s the conclusion of a study carried out by Fox Corporate Finance (FCF).

Growth in this market segment this year was 13.3 percent. Between 2014 and March 2019, foreign banks increased their share of the German market from 8.7 to 11.3 percent. The figures point to a recovery since the global recession of a decade ago.

“Foreign banks reduced their credit volumes by more than 30 percent after the financial crisis,” says Fox Corporate Finance CEO Arno Fuchs. “Since 2014 they’ve been growing dramatically. Foreign banks’ tendency to loan out money procyclically is a major contribution to the procyclical tendencies on the German financial market.”

Foreign banks currently lend out some 104 billion euros in commercial credit – more than before the financial crisis.

Spanish Santander bank in Nordpark, Germany © Andreas Baum/ Santander