While European banks currently pay 3% on deposits, Spanish banks keep this rate at 2.31%

distance between what european banks They pay on average new deposit and what do they pay Spanish organizations come back expand. The continent’s banks agreed to pay average 3.03% New term deposits subscribed in August housesSlightly higher than July (2.83%), but especially compared to July (2.83%) 0.51% compared to August last yearOne month after the European Central Bank (ECB) first increased interest rates to combat inflation. Significantly, the average rate of these savings products It exceeded the 3 percent limit for the first time since January 2012, full euro debt crisis. Faced with this, Spanish banks reduced new deposit rates to a minimum in August. From 2.33% to 2.31% in JulyWith this differential increased with the European average From 0.5 to 0.72 points Percentages according to ECB and Bank of Spain data.

Traditionally, the difference between the amounts paid for deposits in Spain and in the currency union It wasn’t that bulky.. Since statistics began in 2003, the difference is normally around a few decimals even hundreds. In fact, there were times when spanish banks they paid more More than Europeans between 2004 and 2006 (to finance the real estate bubble) or between 2007 and 2011 and in 2012 (due to the major banking crisis). However, the gap has increased rapidly in recent months touch the percentage point (1.65% in the euro area and 0.67% in Spain) in January), because Spanish institutions took advantage of their ample liquidity to avoid increasing deposit returns, the consequences of which benefited even more from the increase in loan prices.

Because the ECB is gone withdrawal of liquidity To reduce inflation in recent months, Spanish banks have started paying more for deposits. smaller assets and digital onesLarger ones progress more slowly. But this is a slow processBecause the decline in credit demand means: need fewer resources. In fact, both the Government and the Central Bank last year called on the sector to increase not only loan rates but also deposit rates. However, after banks increased the average interest rate 1.66 points between January and JulyIn August, they applied a slight discount.

Companies and checking accounts

In addition, aid continues to be provided to households as it has been since 2016. fee for their deposits lower than companies. These are thus a 3.11% 0.8 points more than families, thanks to the term deposits they subscribed to in August. As a result of this trend that has been going on for years, average balance rate Deposits (not new operations) 1.38% for households and 2.67% for companies. It should also be taken into account that 90% of the money Number of individuals with deposits in banks existing accounts mercenary at 0.13%In 2014 (the year the ECB turned interest rates negative to restart the economy) it was more or less evenly distributed between accounts and term deposits. So it is very difficult for banks to do this. your financing is cheaper retailer than then.

The increase in term deposit interest rates in recent months, houses They will close August 97.908 million 32,253 million Euros of the amount allocated to these savings products and 49% more 4.404 million more than in the same month in 2022 and 4.7% more than in July. But the money saved existing accounts came back less than (up to 887.325 million), because families are allocating resources to cushion the impact of rising interest rates and higher inflation (higher early mortgage repayments) and into other better-paying products (Treasury bonds and mutual funds). This caused: total amount what they saved in banks dropped to 985.338 million 10.544 million in August and 1% less than the previous year, and 3.191 million and 0.3% less than in June.

more expensive loan

Interest rate on the loan side new Mortgages issued to households in Spain in August increased slightly compared to the previous month by 3.77% at 3.86%almost double the previous year (2.03%) and the highest level since February 2009. Unlike deposits, in this field There is no difference with the euro zone (3.85%, maximum since August 2011), which means that Spanish organizations higher profitability than their customers’ colleagues. Inside wallet setIn fact, the average interest rate Spanish mortgage holders currently face is 3.44%one percentage point higher than the average euro area (2.31%).

Households closed the month of August with a record debt in bank loans 688.007 million in the amount of euros 2.3% less more than a year ago. Therefore, demand falls, as the ECB intended when increasing interest rates, due to the increase in the cost of credit, the decrease in purchasing power due to high inflation and the acceleration of advance payments. Inside mortgagesThus, a decrease of 3.2 percent was recorded. 498.269 millionThis was partially offset by increases in other loan types such as consumption (0.3%). Own name, bank financing companies fell further: to 4.4% 463.541 million.

Source: Informacion


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