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Introduction
The covid-19 pandemic and Russia’s ongoing attack on Ukraine have marked major economic turning points. The energy crisis, inflationary uncertainties, one of the sharpest interest rate increases in recorded history, and political and geopolitical uncertainties have weakened the economy and are now increasingly forcing market players and private consumers to their knees. Insolvencies and foreclosure sales are on the rise. In the first half of 2024, bankruptcies increased by almost 30 per cent, after a 25 per cent increase in 2023. At the same time, consumer bankruptcies rose by 6.7 per cent compared to the same period last year. Furthermore, significantly more properties have been subject to foreclosure sales, representing a market value of €2.17 billion. It can hardly be expected that banks will not be impacted by this sharp downturn.
As in the past, despite all these enormous economic challenges, banking litigation in Germany proceeded almost as if nothing had happened – it is still true that legal proceedings are lengthy and always represent a look into the past. The legal questions arising in connection with the current crisis, if any, will likely only occupy the courts in a few years time.
