Weak banks may cause credit crunch

KfW says loan volumes have fallen. (SUPPLIED)

The weakness of the German banking sector may be hampering the supply of loans and could cause a credit crunch in the real economy, Germany's development bank KfW said yesterday. Frankfurt-based KfW said loan volumes fell over the past year, reaching an "extraordinarily weak" level in the fourth quarter of 2009, even taking into account the weaker economy.



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