In Europe, and especially in Germany, corporate finance is widely viewed as being dominated by banks. With the tightening of bank regulation in recent years there is a danger that access to credit will become more difficult. However, many enterprises have already improved their creditworthiness by increasing their equity capital ratios and by diversifying their short-term funding. While banks will continue to play a major role in providing long-term loans, capital markets are especially suited to equity funding. Overall, German companies are characterised by a robust financing structure, through which they are well-equipped for future investment.
Russia's war against Ukraine has highlighted the vulnerability of the Federal Republic of Germany to Russian energy imports, especially natural gas.
The current crisis of some American and European banks inevitably triggers fears that an international banking crisis could lead to a new financial crisis. But things in 2023 are very different from those in 2007.