NEWSLETTER of August 22, 2025

The following content has been added at finexpert:

PwC
DAS IMAGE VON FAMILIENUNTERNEHMEN 2025
Family businesses are job engines and economic drivers for Germany; they are financially strong and crisis-proof. However, they lack recognition for this achievement among the general public: the economic importance of family businesses continues to be greatly underestimated – especially in comparison with large corporations. Family businesses are, however, highly sought after as employers: 35 percent of citizens describe them as their preferred employer. Owner-managed companies are particularly popular among the younger generation in training. These are the key findings of a PwC survey of 2,000 citizens, which provides insight into the image of German family businesses. >more

KfW Research
KFW-KREDITMARKTAUSBLICK AUGUST 2025 
According to estimates by KfW Research, new lending to businesses grew by 2.9% year-on-year in the first quarter. Despite the positive economic environment due to pull-forward effects and favourable lending rates, new business developed only modestly. The uncertain economic outlook caused by US tariff policy is dampening new lending business through subdued corporate investment and restrictive lending by banks. Nevertheless, there are signs of an increase in corporate financing requirements. The expected stimulus from the fiscal package and the ‘Made for Germany’ investment initiative at the corporate level may give new business a slight boost in the future. KfW Research therefore expects moderate growth in new business again after a slowdown in the second quarter. >more

Kiel Institut für Weltwirtschaft (IfW Kiel)
GREIX-KAUFPREISINDEX Q2 2025: IMMOBILIENPREISE STEIGEN MODERAT
Residential property prices in Germany rose again in the second quarter of 2025, but there were no major jumps. The most significant increases were seen in prices for single-family homes, while condominiums and multi-family homes rose only slightly and in line with general inflation. Almost everywhere, purchase prices are currently still well below the all-time highs of 2022. Given the current weak momentum, it would take around four years for them to reach those levels again on a national average. In Leipzig, however, prices are already above those levels. >more

Deutsche Bank Research
HOW WILL EUROPEAN COMPANIES EVER CATCH THEIR US PEERS?
Europe’s financial markets have been losing ground to the US for well over a decade. Concerns about this have recently grown to a crescendo as companies with European listings have moved them to the US to take advantage of higher valuations and deeper capital markets. Despite the recent questions about the decline of US exceptionalism, the appeal of US markets does not appear to be waning. The problem for Europe is two-fold. First, European companies routinely generate thinner returns than US companies. Second, several megatrends are set to hurt the continent’s companies more than their US peers. They include being caught in the middle of trade and military geopolitical conflicts, the domestic political shift to the hard-right, concerns about rising sovereign debt, and ageing populations. >more

TWO CENTURIES OF SYSTEMIC BANK RUNS
Rustam Jamilov, Tobias König, Karsten Müller, and Farzad Saidi
2025
Bank runs are a central concern for financial stability, yet systematic empirical evidence remains scarce. We construct a novel historical dataset of bank runs, covering 184 countries since 1800 by combining narrative evidence from 503 sources with statistical indicators of aggregate deposit contractions. We find that: (i) the unconditional likelihood of a bank run is 1.9%; (ii) systemic runs—those accompanied by aggregate deposit outflows—are associated with output losses of 9% over five years, more than after non-systemic runs or deposit contractions alone; (iii) these losses persist even when banks are well capitalized and there is no evidence of fundamental triggers, banking crises, or widespread bank failures; (iv) central banks
and deposit insurance are linked to a lower probability of runs becoming systemic, while liability guarantees coincide with smaller output losses. Our findings highlight a key role of bank liability disruptions in economic fluctuations, over and above solvency issues. >more

PRIVATE MARKETS FOR THE PEOPLE? OR JUST MORE PEOPLE FOR PRIVATE MARKETS?
Ludovic Phalippou
2025
I examine the push to expand private equity access to retail investors, often described as “democratization.” I argue that this shift exposes individuals to high fees, opaque structures, and misleading performance metrics. Without strong governance and transparency, this is not democratization but exploitation. I highlight the risks embedded in current product design and call on advisors and regulators to provide better safeguards. >more