Because Germans are saving more diligently than ever and share prices have recovered from the corona shock in spring, households’ financial assets are growing to the highest level of the post-war period.
Dhe financial wealth of Germans has risen to a new historical record despite the corona crisis. At least if one does not take into account the era of hyperinflation in Germany in the 1920s, but only looks at the development since 1948 with the introduction of the D-Mark. As the Deutsche Bundesbank announced on Friday, although there were valuation losses this year at the beginning of the corona crisis in the first quarter of the year due to the stock market turbulence, by the end of the second quarter the financial assets were higher than ever at EUR 6.63 trillion.
The valuation losses for shares in the first quarter caused by the uncertainty about the consequences of the pandemic were largely offset. The recovery on the stock exchanges in the second quarter resulted in valuation gains for shares and other equity rights of 74 billion euros. That was the “driving force” for the increase in financial wealth. Investment funds also benefited from valuation gains, which, taking into account all transactions and valuation effects, rose by 64 billion euros (10.6 percent).
In addition, households increased their investments in cash and bank deposits by 72 billion euros (2.8 percent). The “transaction-related accumulation of financial assets”, ie pure saving without the valuation gains, also reached an all-time high in the second quarter of 109 billion euros, writes the Bundesbank.
The inflow of cash and deposits into checking accounts, for example, made a significant contribution to this. The investments in savings bonds and savings deposits have been reduced at least less than in the previous quarter. Net purchases of shares and other equity rights were also an important factor at 16 billion euros.