German Companies Face Increased Loan Costs, Handelsblatt Says

Banking regulation will increase financing costs for German companies by about 5 billion euros ($6.3 billion) as banks pass on increased expenses to clients, Handelsblatt reported citing a study by the Technical University of Munich and the Association of Bavarian Business.

Germany’s small- and medium-sized companies, are more reliant on bank loans than publicly trading companies that can tap the markets for funds, Handelsblatt said.

To contact the reporter on this story: Annette Weisbach in Frankfurt at aweisbach1@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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