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Significant Increase in Bad Loans with German Banks

In no other country in Europe has there been more risk of default loans in the past year than in Germany. That has its reasons.

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Insolvencies and empty office space are the cause of a particularly large number of bad loans from German banks.

In 2024, German banks recorded an increase of 24.9 percent in bad loans compared to the previous year. Business insolvencies and value losses in the real estate sector are the main causes. Despite these challenges, the European banking sector remains stable.

·Munich, Germany
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tz.detz.de
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In no other country in Europe has there been more risk of default loans in the past year than in Germany. That has its reasons.

Austria is already second behind Germany. The problem is mainly commercial real estate.

The German banks have to contend with the highest increase in loans at risk of default in European comparison. What is slumbering in the balance sheets of the money houses?

Insolvencies and real estate losses are choking the banking sector

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wz.de broke the news in on Monday, July 7, 2025.
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