Private financial assets in Germany at record levels
Frankfurt / Main – Thanks to rising incomes, Germans can always put more and more money aside. Although they now hoard more than 2 trillion euros as a savings or in cash and waive interest on profits. Private financial assets are still rising.
News / Finance
The financial assets of the people in Germany climbed rapidly at the beginning of the year and reached a new record level. As reported by the Deutsche Bundesbank in Frankfurt on Monday, households’ financial assets in the first quarter of 2015 increased “exceptionally strongly by just under € 140 billion or 2.8 percent on the previous quarter”. As a result, private households now have more than € 5,212 billion in cash, securities, bank deposits or insurance claims.
According to the figures alone, financial assets rose by nearly 53 billion euros: thanks to the robust labor market and rising incomes, many people were able to put more on the high ropes. Despite low interest rates, private households once again invested their money in short-term and supposedly secure bank deposits as well as in insurance and pension funds.
In addition, gains on investment fund units and equities gave private households a valuation gain of over € 87 billion compared to the previous quarter. Real estate or works of art are not included in the statistics. Also, how the assets are distributed, does not show the study.
With around 17 billion euros, savers put just under a third of their funds in bank deposits including cash, especially in liquid sight deposits and cash. Time deposits and savings deposits, including savings bonds, were, according to the information, reduced net. All in all, the assets held as cash and deposits such as overnight or overnight money for the first time skipped just over the limit of two trillion euros.
At the beginning of the year, claims against insurance companies and pension funds, which increased by a net amount of around € 26.5 billion, were even more important for private financial investment: “The great importance of these claims and the bank deposits for the Bank, despite the currently comparatively low-interest rates Financial investment, which is considered to be low risk, points to a continued high-risk aversion of private households, “emphasized the experts of the Bundesbank.
This is also supported by the continuing reluctance of private households on the capital markets. Although shares in investment funds including mixed and pension funds were bought. On the other hand, on balance, people sold shares amounting to just under 6.5 billion euros “despite a generally positive stock market environment – this is the highest selling value since the outbreak of the economic and financial crisis at the end of 2008.
It is surprising that consumers barely used the low level of interest rates for loans: they raised net loans worth a good 4 billion euros, in particular, housing loans. But household liabilities rose only slightly by 0.2 percent to € 1,588 billion. All in all, net financial assets increased sharply by just under 137 billion, or 3.9 percent, to 3,624 billion euros compared to the final quarter of 2014.
With few exceptions, the financial fortune of Germans is steadily growing. In the first quarter of 2000, it still had a value of 3390 billion euros, in early 2010, there were 4290.5 billion euros. Only in some crises there were dents as last in the third quarter of 2011. At that time the turbulences on the stock exchanges nagged on the prosperity of the shareholders.