Entrepreneurs and consumers in Germany will no longer be able to access loans as easily as Loaniefund estimates. As a result of the US real estate crisis, the banks should assess the risks more stringent, so the credit agency.
The size of the loans would be lower, the conditions would be harder.
A resurgence of corporate bankruptcies is therefore not ruled out. However, there can be no question of a credit crunch for consumers and SMEs.
It is noteworthy how, in the course of globalization and worldwide networking of the markets, a crisis in America is affecting German consumers.
It was not until the bankruptcy of CIV and subsequently Gratsev LB and its recent takeover by Flantebank de Finance (FF) that the public and thus all potential credit customers were brought to the fore, How much American lending practice can (not only) affect the German credit and financial markets.
This does not seem to apply only to those careless Falcon bankers who bitterly regret their investment in US real estate funds. As much as one was surprised yesterday about the heavily indebted American households and the easy-credit practice, while in Germany solid and cover-rich deposits as well as a fee needed to take out a loan, so It is very astonishing that the effects of this crash are reaching Falcony, and that the allegedly so strict lending in Germany was probably relatively lax.
After all the major central banks have pumped billions of usd into the market to prevent, among other things, a huge increase in interest rates, the effects are only gradually becoming visible. Similar to the morning after the big storm, the rebuilding and repair work always begins when the storm has all confused everything. Proliferation can then only be made to avoid a similar disaster the next time.
So financial institutions decided to tighten the terms for loans again.
On the one hand, what could mean the end for online and instant loans would be a hard blow to the middle class. Countless businesses live on loans and would not be able to cope with an end to the flow of money due to tougher conditions. While private borrowers have to give up one or the other luxury items, entrepreneurs would have to calculate even scarcer than they already do anyway anyway, and ultimately many central bankruptcies would result.
So it is probably just for the big and reputable financial institutions to reconsider their lending practice in any case and perhaps introduce one or the other new regulations. Nevertheless, the tightening conditions on borrowing should not result in a slowdown in the upturn and entrepreneurial spirit. To be sure, the banks must also rethink their own system, ie also the incentives for employees to arrange a loan, because even this extra money for selling a loan can blind the employees, if, on the basis of a prospective special payment, they both turn a blind eye and ignore any possible lending-related facts, such as lack of credit.
That, for example, the construction rate will rise, does not change the fact that even before the crash just such large investments should be well thought out and calculated. Whether one chooses longer maturities and higher repayment installments or waits until sufficient equity capital is available to cover a certain part of the sum, of course remains left to the customers themselves. Ultimately, not only should they be the ones who have to bear the financial burden of the consequences of the mismanagement of some bank managers.