German corporate access to credit improves slightly in Q3 2026
German companies faced fewer hurdles in credit negotiations during the third quarter, though banks remain restrictive compared to historical averages.
Data from the latest KfW-ifo credit hurdle report indicates a slight easing in credit access for both mid-sized firms and large corporations in Germany. While 36% of mid-sized companies still classified bank behavior as restrictive, this figure represents a decrease of nearly five percentage points compared to the previous quarter. Large enterprises saw a similar trend, with reports of restricted lending falling to 27%.
Despite the marginal improvement, financing conditions remain tight by historical standards. KfW chief economist Dr. Dirk Schumacher noted that a sustained economic recovery is required before banks move toward a broader easing of their lending policies. KfW Research forecasts a 1.5% growth rate for the German economy next year, which may eventually support more favorable bank perspectives on corporate credit risk.
Credit demand trends diverged significantly between business segments during the quarter. Large companies showed increased interest in borrowing, with demand rising to 30.6%. In contrast, small and medium-sized enterprises (SMEs) recorded their lowest interest in taking on new loans since mid-2021, at under 19%. According to Schumacher, this reluctance among SMEs is driven by economic uncertainty, a desire to avoid debt, and, in some cases, unresolved succession planning as business owners reach retirement age.