decision banks Spaniards barely raise interest deposit Despite the strong increase in reference rates, save about 3,250 million euros in 2022. This is evident from an article published by the Bank of Spain this Tuesday in which economists make an estimate of how much deposit rates would have risen if they had behaved as they did in previous periods of money growth. Had they paid this amount to their household and business customers, the industry’s business in the country would have had a core income (interest margin) of around 20,750 million instead of 24,000 million.
The report shows that payment to customers for deposits arrived at the end of 2021. historical minimum of less than 70 million euros per month. The slight increase in interest rates caused the cost of these deposits to banks to rise to 116 million per month in the second half of last year. However, if the interest on these savings products had behaved as before, businesses would have had to make close to 525 million payments per month by the end of 2022. Therefore, the amount of savings obtained by banks throughout the year reaches 100 million TL in 2022. the aforementioned 3,250 million.
Traditionally, increases euribor in the form of increases in deposit interest rates. and especially those with terms. Likewise, the increase in the cost of money has caused customers to move their money from demand deposits (checking accounts) to higher yielding time deposits. Both phenomena have historically resulted in an increase in the cost of these deposits for banks. However, the reflection of Euribor on deposit rates in 2022 was “more limited than expected” based on the historical experience of the 2003-2019 period.
minimal translation
And all this in an environment where Euribor has not reached the levels of the Great Financial Crisis, but is rising faster and more markedly than ever as a result of the increase in reference interest rates approved by the European Central Bank (ECB). ) to fight inflation. For this reason, increased 3.5% last yearIt was 1.3 points between March 2010 and July 2011 and 3.1 points between June 2005 and October 2008.
During these two periods, the increase in Euribor increased by 25% and 40% respectively to the time deposit rates for households, while it was only 4% last year according to the econometric models of the Bank of Spain. was close to 50% based on historical experience. When it comes to companies, in previous chapters this ratio was 40% and 70% and is now only 16.2% compared to the predictable 60%.. In the case of demand deposits, transfer from last year was practically negligible (0.7% and 2.3%, respectively).
The report also points out that the impact of the increase in Euribor on household deposit rates is very limited (less than 5%) in all major euro economies (in addition to Germany, France, Italy and the Netherlands). to Spain), but on the other hand there was greater variation in deposits to companies (in Germany and the Netherlands it reached 41% and in Spain it remained at the aforementioned 16.2%). Overall, the response to the rise in Euribor in Spain and Italy was “particularly weak”. In this sense, the document points out that deposit types are reflected in Turkey. The increase in Euribor is less pronounced in countries with high banking intensity. and that its banks deposit more money in the ECB and therefore have higher levels of liquidity.