That is why the Bundesbank argues that banking regulation should not discriminate against long-term financial relations. Small and medium-sized enterprises with a revenue of up to f 5 million make up more than 95 percent of all enterprises in Germany. This „Mittelstand“ forms the backbone of the German economy. However, their share of outside capital is significantly higher than with larger firms.
Financially included economic agents appear to be able to ride out interest rate cycles pro-cyclically instead of being impacted counter-cyclically.