German banks see rise in loans to finance consumer spending

German banks have registered rise in borrowing for consumer spending, with loans worth a total of €30 billion ($35.5 billion) granted in the first half of 2025, an industry association said on Wednesday.

This was an increase of 4.2% compared to the first six months of last year, according to the Bankenfachverband group, which represents the interests of German credit banks.

Meanwhile, loans provided to companies for investment continued to decline in the first half of the year, with banks providing a total of €5.2 billion in new funds for machinery, vehicles and specialized technology - down 6.6% compared to the same period last year.

It comes as many companies are holding back on investments amid Germany's economic downturn.

In total, the 48 banks represented by the association granted new loans worth €66.7 billion in the first half of 2025, slightly more than a year earlier, when they gave out €66.5 billion.

By the end of June, total loans to consumers and businesses stood at €202.1 billion.