Luring banks back to the Mittelstand

KfW's platform to securitize portfolios of loans to SMEs in Germany has broadened opportunities for the banks involved. It is far from clear, though, that these lenders have taken the steps needed to enhance margins on this business. Katie Martin reports.

Suhlrie: supporting the
Mittelstand’s access to
loans through securitizations
and refinancing is crucial in
a country where such a high
proportion of companies
rely on bank funding





THE CAPITAL MARKETS are producing new ways for banks to create a profitable business from lending to Germany’s small and medium-size companies – the Mittelstand – and KfW is playing a leading role. But evidence of better risk management in lending is scarce.

Foreign investors can breathe one small sigh of relief. If they found the name of Germany’s development banking group, Kreditanstalt für Wiederaufbau, difficult to pronounce, they no longer need to bother trying.

Thanks for your interest in Euromoney!
To unlock this article: