Despite the Corona crisis, the financial fortunes of citizens in Germany in general have increased in an unprecedented manner.
The German Central Bank announced in Frankfurt today, Friday, that the financial assets of families in the form of cash, securities, bank deposits and claims from insurance companies reached in the last quarter of last year a record number of 6.95 trillion euros, an increase of 211 billion euros, or 3.1%, from Third quarter of 2020.
According to the data, people saved their money during the crisis, while at the same time benefiting from the boom in the stock market. The data does not reveal exactly how the colossal sum of nearly 7 trillion euros was distributed.
The German central bank stated that “the increase in financial assets is due in particular to the increase in cash and deposits, which totaled 74 billion euros, and gains in valuing stocks and other securities (61 billion).”
Savers have also invested increasingly in stocks or funds.
“Households remained very active in the capital market in the last quarter,” the German central bank said. From October to the end of December 2020, families bought stocks and bonds in investment funds with a total value of 21 billion euros.
And just as in the past, people take advantage of low interest rates to borrow cheap money, especially through mortgage loans. After deducting debt, financial assets rose by 187 billion to around 4.99 trillion euros.
When calculating, the central bank takes into account cash, bank deposits, securities and insurance claims – but not real estate.
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