Corporate entities frequently voice concerns over banks' reluctance to provide loans.
Businesses frequently criticize banks for their reluctance to lend. According to a survey conducted by the Munich Ifo Institute in September, 32.9% of companies reported having difficulty securing new loans. This figure was lower in June, at 27.1%. The September figure is the highest in seven years.
There's been a substantial increase in the credit threshold for service providers (from 27.0 to 35.7%) and industry (from 26.2 to 34.3%). As Klaus Wohlrabe, head of Ifo surveys, put it, "The decrease in orders in various sectors prompts banks to conduct more thorough credit checks." In the wholesale sector (from 24.6 to 23.2%), retail (from 30.0 to 27.0%), and particularly in construction (from 32.2 to 20.7%), companies found it simpler to secure loans.
Businesses might consider seeking other services for their financing needs, given the rigorous credit checks conducted by banks. Despite the challenges in securing loans, some sectors, such as wholesale and retail, have reported improved access to funding.
