The head of the association of German Savings Banks, Helmut Sleweis, expects the quadrupling of those who cannot save this year in autumn and winter.
Helmut Schleweis chairman Helmut Schleweis told Welt am Sonntag: “We expect that, due to the significant price increase, up to 60% of German households will have to use their entire disposable income – or more – every month for net living expenses”.
Schleweis continues: “This segment of the population will no longer be able to save.” A year ago, according to Sparkassen’s Wealth Barometer, only 15% were unable to put money aside.
Volks- und Raiffeisenbanken are also seeing a reduced customer base. “High inflation deprives consumers of purchasing power, which reduces their ability to save,” Andreas Martin, board member of the Federal Association of German Volksbanks and Raiffeisenbanks, told the newspaper.
Many were still tapping into savings accumulated during the coronavirus period due to a lack of consumption opportunities. “The peak savings rate was around 16% in 2020 and for 2022 we expect a return to the pre-crisis level of 11%,” said Martin.
In savings banks, they expect the situation to worsen significantly, especially in the fall and winter, especially among people with low and middle incomes.
According to the study, the strained situation is already evident in current account overdrafts. Those using the so-called overdraft facility to bridge short-term difficulties now use the “significantly more” limit on average.
The Greens, meanwhile, are calling for a cap on overdraft rates, which currently average just under 10%.
“In principle, we Greens believe it is necessary to put a legislative ceiling on overdraft rates,” Greens finance politician Stefan Schmidt told the Welt am Sonntag newspaper. The interest rate cap should protect citizens from escalating costs.
Economist Rüdiger Bachmann from the University of Notre Dame also warned Germans in Bild: “The federal government often gives citizens the impression that things can simply go on as before. Instead, politicians must finally tell citizens honestly that they are facing long, difficult years. The truth is that prosperity and especially consumption in Germany will not grow so strongly for the next few years.”
Source: Capital
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