this Alicante they return save money money. this doubts about economic evolution and, above all, fear of the consequences of inflation delaying some purchasing decisions companies are also important as they postpone their investment projects. As a result, in the second quarter of the year, immediately after the start of the war in Ukraine, deposit volume Significant increase of branches of the province as a precaution against what may happen.
In particular, the people of Alicante in just three months they put up to 664 million in their account According to the latest data from the Bank of Spain, the total balance of resources held by households and companies in financial institutions is in euros. 35,775 million euro. The savings figure recorded between April and June contrasts with the 70 million savings of the provincial residents in the first quarter of the year, when the economic outlook was not yet very negative.
Of course, in any case, this strong recovery in savings in recent months has not yet managed to compensate for the sharp decline in deposits recorded in the summer of 2021, due to the decrease in income from international tourism or the return of the ICO. unused loans among other reasons-, therefore annual comparison still shows a negative balance According to the same sources, about 3,000 euros.
As is often the case, this acceleration in savings has double positive and negative readings. On the one hand, it indicates that at least a part of the population maintains the economic situation well enough. save a percentage of your income looking to the future. But it also shows a growing insecurity and most of all, it means a drop in consumption and business investment, which helps slow the economy, as the director of Ineca Studies recalls. Francisco Llopis.
“Foreseeable, this trend continue over the next few monthsbut one can expect a time to come when the economic disruption will no longer allow more savings to be generated,” he warns. Antonio GallardoFrom Banqmi, iAhorro’s financial comparator.
In this context, Gallardo points out that banks—at least large corporations—do nothing to encourage such an inflow of funds into their branches, because for the time being, return on savings remains very lowDespite the interest rate hike, they transferred quickly to loans.
That’s why few offers seen in the market, such as paid accounts from Bankinter or Sabadell, are limited to a certain balance and more than savings. Their intention is to seize the payroll or, according to the expert, cross-selling of other products.
Those who want to earn more than 2% return in this way should apply for deposit. online banking and foreign organizations As the person responsible for Helpmycash Banks and Deposits, marketed in Spain, stated, the interest they pay on their products has increased much more, Javier Mezcua.
This is because the large Spanish establishments now have all the liquidity they need, As the conservative profile of Spanish savers slows the transfer of funds to mutual funds and other types of products. Therefore, most bank customers prefer to have money in their account, even if they do not earn a single euro.
But as Antonio Gallardo points out, everything can change if one of the big players in the market decides to start. a war”and start offering more attractive offers. However, there seems to be some work to be done on contracting loans, especially mortgages, which are the loans that offer the most collateral to organizations.
Efforts better understood if you observe the strong reduction a person experiences. outstanding loan balance In the province, this means a decline in jobs for banks. Thus, the 56,957 million people of Alicante owed to banks in September 2008. 32,972 million Although there was a 42% drop at the end of last June, the reality is that debt removal has slowed in the last quarter.
Branch network drops to 1975 levels
The latest statistics from the Bank of Spain also reflect that most businesses continue to more or less cut their networks. In this way, another 110 branches disappeared in the last year, 20 of which were closed in the second quarter of 2022.
Thus, the current network has almost 608 branches, the lowest figure since the last quarter of 1975, that is, the end of the dictatorship.
As if that weren’t enough, everything indicates this trend will continue, as the industry insists on the need to continue to increase the profitability of organizations that in most cases do not cover the cost of capital. In other words, the profitability demanded by the investors in the markets.
Additionally, they argue that while the increase in rates will help increase the utility of institutions, given the development of the internet and other alternative service channels, the majority of customers are almost no longer going to physical branches.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.