The most recent Bank Lending Survey found that the responding German banks had considerably tightened their lending policies in the third quarter. This is also a response to the increased credit risk perceived by banks. However, thus far, there has been no evidence of the supply of credit being restricted in general. Instead, lending to nonfinancial corporations was strongly expanded once again.
It is important that banks continue to strengthen their capital base and prudently manage their risks in order to remain resilient. This will enable them to effectively fulfil their vital financing role in the economy in future, too. Even in uncertain times. 5 Conclusion Ladies and gentlemen, times are uncertain.