Cyclical Upturn, But Structural Hindrances Remain

BMI View: A recovery in economic activity and easy European Central Bank monetary policy has led to a cyclical rebound in commercial bank lending in Germany. While conditions should remain favourable for the next few years, loan growth will be capped by structural factors.Activity in the German banking sector has rebounded significantly from its trough in 2013. Loan growth averaged 3.2% y-o-y in the first five months of 2015, and our full-year forecast of 3.0% expansion would make this...

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