Credit climate 2025: Between departure and hedging
19 August 2025
Reading time: 6 min
2025 is a year of economic nuances. While the German economy is slowly emerging from the shadow of previous years, the Bundesbank's latest Bank Lending Survey shows that banks are once again willing to lend – but not without a safety net.
After a rather subdued 2024 year, in which many companies put their investment plans on hold, demand for credit is picking up noticeably again in 2025. Small and medium-sized enterprises (SMEs) in particular are showing a willingness to invest, with a net increase in demand of +27 points in July. Large companies are also more active again, although slightly more cautious (+14 points).
What is driving this? The economic outlook has stabilized, supply chains are functioning reasonably well again, and interest rates – well, they are no longer quite as painful as they were a year ago.
Credit guidelines: Loosening up with a seatbelt
Banks are responding – but with caution. Credit guidelines were loosened slightly in the first half of 2025, especially for SMEs. In July, the net share of loosening was +33 points - a clear signal: the banks are opening the door, but they are keeping the key. Large companies are also benefiting, though somewhat less dynamically (+31 points). Risk assessment remains a key factor: those who can present solid figures and good collateral have the best chances.
At ING Germany, recently voted the Opens in a new tabmost active foreign bank in the lending business by companies in a survey conducted by the industry publication “FINANCE,” a similar picture emerges: “The lending business in Germany is currently stable overall. We are engaged in a good and cooperative dialogue with our corporate customers – this is particularly important in times of uncertainty. This is because a certain reticence to invest can be observed, whether due to geopolitical tensions, tariffs, or regulatory risks. Nevertheless, we are optimistic about the rest of the year, and the lending business is also stable and resilient overall," says Bart Ponsioen, responsible for corporate lending at ING Germany.
ESG is dead, long live ESG
While the initial euphoria surrounding ESG investments has subsided slightly and is now being critically questioned, the importance of sustainability and responsible action remains. The results of the Bank Lending Survey show: Sustainability is increasingly becoming a credit criterion. In particular, industry- and company-specific circumstances are being viewed by banks, with a net increase of +17 points – an indication that companies with a clear ESG profile are preferred, while CO₂-intensive or unsustainable business models are increasingly viewed critically. For corporate customers, this means that sustainability is no longer a “nice-to-have” but a tangible competitive advantage when it comes to financing. Those who operate in an ESG-compliant manner not only improve their public image, but also their credit terms. Many of ING's corporate customers benefited from these terms in the first half of the year: Opens in a new tabthe sustainable volume mobilized at ING rose to €68 billion, 19 percent more than in the first half of 2024.
2025 will not be a boom year – but it will be a year of opportunities
Companies that are on solid footing will benefit from a more favorable lending environment in 2025. Banks are willing to lend more again, but they are doing so with caution. For corporates, this means that now is the time to put well-prepared investment projects on the table.
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