Fritzi Köhler-Geib: Intangible investment and the economy - a central banking perspective
Speech by Dr Fritzi Köhler-Geib, Member of the Executive Board of the Deutsche Bundesbank, at the Global Launch of WIPO (World Intellectual Property Organization)-LBS (Luiss Business School), Geneva, 8 July 2026.
Dr. Fritzi Köhler-Geib, a member of the Executive Board at the Deutsche Bundesbank, delivered a speech at the Global Launch of WIPO-LBS report on the state of intangible investments in 2026. The report highlighted the significant growth of intangible investments compared to physical investments, which now surpass them in terms of percentage of GDP. Dr. Köhler-Geib emphasized the importance of understanding the relationship between monetary policy and intangible investments, as well as their impact on financial stability.
One key point addressed by Dr. Köhler-Geib was the role of intangible assets in altering the monetary policy transmission mechanism. Research shows that physical investments decline significantly after an interest rate hike, while intangible investments fall by less than 1%. This is primarily due to intangible assets being difficult to use as collateral, which weakens the credit channel through which monetary policy reaches firms.
The research suggests that the same policy impulse now delivers a smaller real-economy response than it did a decade ago, and central banks must adapt to this new reality.
Another area of concern addressed by Dr. Köhler-Geib was the impact of intangible assets on financial stability. A study found that the portfolio share of commercial lending in US banks fell by about one-third, while the share of real-estate lending more than doubled. The researchers attributed approximately 30% of this decline to the rise in intangibles.
Intangible assets are difficult to pledge as collateral, leading firms to hold more cash and banks shifting their lending towards other asset classes, such as real estate. This shift may have implications for banks' balance sheets and could warrant further consideration from a macroprudential perspective.
Dr. Köhler-Geib also noted that only 62% of intangible investments are recorded in official statistics, which is a significant gap. This lack of reliable data makes it challenging for policymakers to understand and respond to the growing importance of intangible investments. She emphasized the need for improved measurement and identification of intangible assets to inform policy decisions and ensure macroeconomic stability.
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