Bundesbank expects 6,000 insolvencies in the first quarter of 2021
Pressure on banks due to bad loans increases
The Bundesbank expects more than 6,000 corporate insolvencies in the first quarter of next year. This was announced by the Frankfurt Central Bank yesterday, Tuesday, in the course of the publication of the Financial Stability Report 2020.
Since the beginning of the Corona crisis, the Federal Government has suspended the obligation for insolvent companies to file for insolvency. Since the first of October this has been in force again. The Bundesbank fears that there could be an accumulation of corporate bankruptcies from 2021 onwards.
However, the Bundesbank appeals to German financial institutions to continue lending to companies – despite increasing pressure from non-performing loans. The banks should use their existing capital buffers in order to continue to provide adequate credit, demands Bundesbank Vice President Claudia Buch. Market Screener
(Image rights: Deutsche Bundesbank)