Things are going well on the stock market and more savings are being made – so it is not surprising that Germans’ financial assets are increasing. At the same time, however, more money is borrowed because of the low interest rates.
KPrice gains on the stock market and increased savings have driven the Germans’ financial wealth to a record level. Private household assets in the form of cash, securities, bank deposits and claims against insurance companies amounted to 6,302 billion euros at the end of the third quarter of 2019, as the Bundesbank announced on Friday. This increased compared to the same period of the previous yearFinancial assetsby 271 billion euros or 4.5 percent.
At the beginning of the year, DZ Bank had that based on its own calculationsFinancial assets of the Germans for the end of 2019 reported at 6,600 billion euros (FAZ of January 2). The increase over the previous year was 441 billion euros. According to the value of DZ Bank at the end of 2019 as well as the Bundesbank’s figures for the end of October 2019, that isGerman financial wealth at record high.
As announced by the Bundesbank, German savers continue to rely on cash and bank deposits, among other things, which although they hardly yield anything because of the low interest rates, but which they can access quickly. “The preference for liquid or perceived as low-risk forms of investment continued,” explained the Bundesbank. Investors benefited from the rise in stock exchange prices. Shares and shares in investment funds recorded price gains of 15 billion euros, thus contributing to the increase in financial assets. At the same time, people used the low interest rates to borrow money cheaply, especially for building housing. Overall, household liabilities rose by around 25 billion to around 1,861 billion euros.