News from 2024-08-02 / KfW Research

KfW-ifo Credit Constraint Indicator Q2 2024

Accessing credit is becoming more difficult again for businesses

Businesses continue to face increased difficulties in loan negotiations with banks. After access to credit recently improved slightly for SMEs, they now suffered another setback in the spring quarter. The KfW ifo Credit Constraint Indicator for SMEs increased to 27.8%. Around one in four large enterprises now also complain that banks are more restrictive in their policies towards them. Credit constraint for this size class has thus climbed to a new high.

The faltering economic recovery may have prompted banks to respond more cautiously to rising credit demand, particularly from large enterprises.

KfW-ifo Credit Constraint Indicator Q2 2024

Press release

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