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Germany's financial sector is grappling with intensifying credit risks as the country's major banks face growing pressure. The demand for lower interest rates across the Eurozone echoes louder, fueled by a brewing crisis that has infiltrated the banking system. The ripple effects of misguided overregulation, an obsession with climate policies, and soaring public debt are now coming to a head.
In just the first half of the year, risk provisions by Germany's top lenders skyrocketed nearly 50%. Banks are grappling with troubled loans from struggling companies and consumers, with some warning that the worst may still be ahead.
DZ Bank AG, the nation's second-largest lender, dramatically increased its risk provisions, citing ongoing geopolitical tensions as a significant economic drag. The combination of rising borrowing costs and the end of an era of cheap energy has left Germany's economy stagnating with little hope of a quick recovery.
You have great sense of economics! Are you a professional economist?
Here I can see that Banks in Germany are trying to aave a disaster. Banks only raise this mich risk provisions when they an inevitable disaster. Is Germany on the edge of falling in a disaster?
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i am an economist (second degree in philosophy and ancient history), manage two small private wealth funds. but i have mostly earned my money as an agency owner in the media sector for over 26 years. on Germany: this is a self-inflicted political crisis, embedded in the eurozone context. What we have been experiencing since the exit from nuclear power, the overregulation and high taxation will all have its consequences in the economic sphere too
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Not surprised at all how these banks are taking support of geopolitical tensions. Instead of citing these reasons, which have nothing to do with common men, they should stop lending those big companies which are feeling these tensions.
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seems like it increased from 1.2B to 1.8B
Honestly doesn't seem like that much money to me.
Is this like FDIC, where if there is an emergency what's in the reserve fund doesn't really matter, gov is just going to bail everyone by printing anyway?
I guess I don't understand what "risk provisions" is, but my brain maps it to something like FDIC.
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I don't think it is just Germany having banking issues. The World Financial systems are all ready under pressure.
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True. But Europe after years of the zero bound grew a zombie economy that You cannot compare to any other region
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Wow, I see that all your posts here on S.N. are about economics and I like that! Even though I live in Latin America, I like to keep up to date with the economy of the EU in one way or another. If you want to learn well! As is my case, you should know about the economy at a global level..!! Keep posting👍
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Thank You y saludos
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