Fast and powerful rate increase having a reference interest European Central Bank (ECB) The effort to fight against high inflation has been transferred to the people’s pockets families For this reason more harmful What previous cycles Rising money prices aggravate the impact of inflationary shock on domestic finances. Last August, the last month for which data is available, households they paid to banks Another 1.119 million euros in their interests credit What December 2021The monetary authority announced the end of debt purchases and began to tighten monetary policy. Instead of, fee what families receive in exchange for their more traditional savings (accounts and deposits) barely increased 192 million, As can be calculated from the data Bank of Spain.
Therefore entities transfer of ascension shape types loans faster than deposits. “The increase in Euribor was only transferred partially at average cost deposit retailers in Spain, under observed translation levels previous cycles The tightening of monetary policy emphasized a few days ago” Governor supervisory body Pablo Hernández de Cos. HE euribor rose a little four and a half points from the minimum level it marked from December 2021 to last August (4.073%). average deposit rate maturity increased by less than a third (1,333 pointsIt is at 1.377%.
But the most relevant thing is 90% of the money what households currently hold in assets existing accountsaverage interest rate increased by only 0.111 points, at 0.127%. However, in previous interest rate hike cycles, family savings were distributed equally among these accounts. depositHE They constituted a rate between 50 percent and 60 percent What families save in banks. In other words, even if term deposit interest rates are increased, institutions We pay much less interest More damage was done to households than in similar events in the past because most of their money was held in accounts with no or minimum wage.
Greater customer profitability
Moreover, in the same period analyzed, average mortgage rate The proportion of loans, which constitute 74% of families’ loans, increased 2.3 points (3.436%), while the rest of your credits rose a little higher A point (6.94%). As a result, monthly bill interest payment Spending on a household basis jumped to 1 billion 119 million euros 1.343 million December 2021 2.462 per million last August. Just the opposite, interest collected deposits and accounts of families increased by only 192 million, 14 to 206 million. This means: monthly margin 927 million for organizations and a 69% improvement. 2.256 million.
According to the predictions of the Bank of Spain and based on the end of 2021, interest payments on loans started to increase. erode gross annual disposable income The number of households increased in May 2022 and the bill has been increasing since then until the equivalent of 1.4% is subtracted. Same thing in August. collected revenue With deposits, they only started to partially compensate in January 2023, and in August they were only able to increase their gross annual income in 2023. 0.3 percentage points.
More profitability for customers
The uneven development of the interest rate applied to loans and deposits is the main reason for this situation. profits of banks Between January and June grew by 44% compared to a year ago and 62% Compared to the first half of 2021 12.608 million. This is what it is called in banking customer difference the margin between the average rate charged to lend to them and the average rate paid on their savings. It is always positive because otherwise the business would suffer losses and become unsustainable, but wider is, is, earn more money your customer’s presence.
Tightening the ECB’s monetary policy, variable loan installments in addition to the raises already granted as stated in the contracts price of new loans It also increased as a reflection of the rise in Euribor. Instead, the industry slowed down increase deposit feeIt benefits from its large liquidity position and low credit demand.
According to the consultant Alvarez and Marsalcustomer margin 10 big banks The Spaniards crossed in one year from 1.79% to 2.5% June, because the increase in the average rate collected (from 1.94% to 2.89%) was above the average interest rate increase paid (from 0.15% to 0.38%). Its senior director, Eduardo Areilza, predicted this week that this 2.5% could mark a peak and the margin could change in coming quarters Between 2.2% and 2.5%. He emphasized that what matters is how much money there is. current accounts turn into deposits within the period. According to their predictions, unlike in times past, these will not increase until they reach further afield. 35%-50% The current 10% of savings held by households in banks, will benefit the results of your beings.