Bundesbank details German financial asset formation and external financing in Q3 2025
The Bundesbank has published data on financial asset formation and external financing in Germany for the third quarter of 2025. Private households significantly increased their net financial assets, while non-financial corporations reduced theirs.
Households boost cash and investment funds
German private households significantly increased their net financial asset formation to €78.2 billion in the third quarter of 2025, a notable rise from €67.9 billion in the previous quarter.
This growth was primarily driven by a substantial increase in cash and deposits, which collectively rose by €31.0 billion.
Within this category, sight deposits saw a strong inflow of €33.8 billion, while savings deposits continued their decline, decreasing by €3.3 billion.
Households also allocated considerable funds to investment funds, adding €21.5 billion to their holdings.
Claims from insurance and pension systems grew by €11.2 billion.
On the liabilities side, households took on additional loans amounting to €16.2 billion.
The total net financial assets held by private households reached €7,221.4 billion by the end of Q3 2025, with the debt ratio remaining stable at 49.0 percent.
Corporate financing shifts focus
German non-financial corporations recorded a net financial asset reduction of -€18.1 billion in the third quarter of 2025, an improvement from -€35.3 billion in the preceding quarter.
Despite this, corporations increased their cash and deposits by €38.5 billion.
On the liabilities side, external financing saw a notable increase in loans, which rose by €27.6 billion.
Liabilities from shares and other equity also increased by €20.3 billion.
Conversely, corporations reduced their bond liabilities by €5.2 billion.
The total net financial assets for non-financial corporations stood at -€3,097.8 billion by the end of Q3 2025, with their debt ratio remaining largely stable at 68.1 percent.
Divergent trends, uncertain outlook
The latest data reveals a mixed picture for the German economy, with households accumulating financial assets while corporations reduce their net position.
This divergence suggests differing economic priorities, possibly indicating household caution alongside corporate deleveraging or investment.
The combined effect on aggregate demand and future growth remains uncertain, warranting close monitoring of these sectoral trends.