Lending to the domestic private sector by category of banks

Loans to the domestic private sector make up between 55 and 60% of the balance sheet total of the savings banks, credit co-operatives and building and loan associations. The figure is almost a third for the commercial banks, over a quarter for the mortgage banks and only 20% for the Landesbanks. The prominent role played by these loans on the balance sheet of savings banks and credit co-operatives is mainly due to the fact that these banks are not very active in other business segments (securities, cross-border operations, interbank market).

Table: Lending to the domestic private sector by category of banks

Enterprises and the self-employed are the largest group of domestic borrowers from the commercial banks, Landesbanks, mortgage banks and special purpose banks. For the Landesbanks and special purpose banks, corporate loans are clearly of primary importance. For the savings banks and credit co-operatives, on the other hand, retail loans play a more significant role than loans to corporate customers.

Corporate lending by all categories of banks has increased disproportionately slowly since the mid-1990s. This reflects the continued lack of economic growth coupled with a large number of bankruptcies and provisions against bad debts. As a result, all banks have become more cautious when granting new loans.