Households, by contrast, have borrowed substantially less to finance real estate (chart 5) due to higher interest rates, lower real incomes and elevated uncertainty. Banks have become more cautious about lending – no doubt in a reflection of the upturn in risk. Seite 7 von 18 Deutsche Bundesbank, Directorate General Communications Wilhelm-Epstein-Strasse 14, 60431 Frankfurt am Main, Germany, Tel.
: +49 (0)69 9566 33511, Fax: +49 (0)69 9566 33077 presse@bundesbank.de, www.bundesbank.de Reproduction permitted only if source is stated. Chart 6  The upturn in the financial cycle is weakening overall, then, but vulnerabilities in the loan portfolios remain high (chart 6).