Despite a slump in interest rates and a slowdown in the economy, private households' financial wealth in Germany has risen to a new record. The assets in the form of cash, securities, bank deposits and insurance claims totaled € 6237 billion in the second quarter, the Deutsche Bundesbank reported.
That was an increase of 95 billion euros or 1.5 percent compared to the previous quarter. Within a year, financial assets increased by 4.6 percent. Investors also benefited from higher stock market prices.
The German citizens continue to rely mainly on cash and bank deposits, which, although due to the low interest rate, hardly give anything back, but they can quickly access. "Overall, there is still a strong preference for liquid or low-risk investment," said the central bank. For the second year in a row, private households reportedly increased their savings and savings bonds.
Net, ie after deduction of debt, financial assets in the second quarter compared to the first quarter by 70 billion euros to 4401 billion euros. The Bundesbank takes cash, bank deposits, securities and insurance claims into account when calculating its financial assets, but not real estate. How the assets are distributed is not apparent from the data.