Weak banks may cause credit crunch

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.

Follow Emirates 24|7 on Google News.