The German Bundesbank published sectoral results from Germany’s financial accounts for the second quarter of 2025, reporting a sharp rise in private households’ financial assets alongside a shift from time deposits into overnight deposits, while the external financing of non-financial corporations eased. Households’ financial assets rose to EUR 9,216 billion at quarter-end, up EUR 138 billion on the prior quarter, and the distribution-based analysis showed the aggregate real return on households’ financial wealth at about 1.4%, with the less-wealthy half of households still experiencing negative real returns. Households built new financial claims of EUR 69 billion and recorded valuation gains of EUR 69 billion after valuation losses in the prior quarter, with valuation gains mainly from equities and other equity instruments (EUR 42 billion) and investment funds (EUR 19 billion). In portfolio flows, households reduced time deposits by EUR 14 billion and increased cash and overnight deposits by EUR 51 billion, linked to falling rates on short-term time deposits following policy rate cuts and, according to the release, heightened uncertainty after the US government’s early-April tariff announcements. Net purchases included EUR 24 billion in investment fund shares (including EUR 4 billion in money market funds), EUR 7 billion in equities and other equity (EUR 4 billion in listed foreign shares), EUR 1 billion in debt securities, and EUR 13 billion in insurance and pension entitlements. Household liabilities increased to EUR 2,151 billion on borrowing of EUR 11 billion, leaving the debt ratio unchanged at 49.1% of nominal GDP and lifting net financial wealth to EUR 7,064 billion. Non-financial corporations’ external financing fell by EUR 19 billion to EUR 37 billion, driven by a drop in loan-based financing to EUR 16 billion from EUR 36 billion, partly offset by EUR 14 billion in borrowing from abroad; net bond issuance fell to near zero and equity issuance was broadly stable at EUR 8 billion. Corporate liabilities rose by EUR 218 billion to EUR 12,051 billion, largely due to valuation effects of EUR 181 billion (EUR 151 billion on issued equity), while the debt ratio was broadly flat at 68.2% of nominal GDP; financial assets increased by EUR 43 billion to EUR 8,931 billion and net financial wealth declined to minus EUR 3,120 billion. The Bundesbank noted that revisions to the financial accounts and national accounts mean the figures are not comparable with earlier press notes.
German Bundesbank 2025-10-17
German Bundesbank publishes Q2 2025 financial accounts showing households moving from time deposits to overnight deposits and corporate external financing falling to EUR 37bn
The German Bundesbank reported a significant increase in private households' financial assets to EUR 9,216 billion in Q2 2025, with a shift from time deposits to overnight deposits amid falling short-term rates and US tariff uncertainties. Households' net financial wealth rose to EUR 7,064 billion, while non-financial corporations' external financing decreased by EUR 19 billion due to reduced loan-based financing. Corporate liabilities increased by EUR 218 billion, largely from valuation effects, with net financial wealth declining to minus EUR 3,120 billion.