Saving during the corona crisis: Cash is king
Heike MaiGerman households saved surprisingly little money during Q1; their bank deposits were only up by EUR 5.
German households saved surprisingly little money during Q1; their bank deposits were only up by EUR 5.8 bn. In the lockdown month of March, deposits even declined by EUR 11.1 bn, as households withdrew a lot of cash due to the uncertain situation. During the current quarter, however, households will probably build up deposits substantially in order to prepare for potential income losses. By contrast, retail loans continued to increase strongly in Q1 and may cool down only in the medium term.
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