Germans are saving more than ever: bank report

Germans are saving more than ever despite minimal interest rates, German central bank (Bundesbank) reported on Wednesday.

According to Bundesbank, households' financial assets amounted to 5.8 billion euros (7.1 billion U.S. dollars) in the third quarter of 2017, up by 1.2 percent on the previous quarter.

The assets counted include cash, bank deposits, securities and claims on insurance companies, but not real estate, German news agency dpa reported, saying that the higher savings are because of low unemployment and rising real wages.

Bundesbank reported that the largest inflows of funds were again recorded for currency and deposits, followed by claims on insurance corporations. Although investment in shares and investment fund shares also increased again significantly, German households' preference for liquid and low-risk investments persisted.

The European Central Bank decided in December 2017 to maintain the key interest rates for the euro area at record low, or 0.00 percent for an extended period of time. (1 euro = 1.22 U.S.dollars)

(ASIA PACIFIC DAILY)