The main banking associations in Spain, the AEB and CECA, condemned the newly proposed tax this Thursday, warning it could hinder the economic recovery, limit job creation, and fail to reduce inflation. Their concern centers on how the measure might impact lending, financial stability, and the overall health of the economy during a period of rising prices and geopolitical strain.
The Spanish Banking Association (AEB) and the Spanish Confederation of Savings Banks (CECA) issued a joint statement underscoring the tax implications for financial stability in a climate shaped by inflationary pressures and global tensions. They stressed that the banking sector still makes a meaningful contribution to the national economy and supports public finances through certain tax contributions, even as regulators reassess fiscal policy.
Banks facing higher costs and tighter margins
According to the associations, the measure approved in Congress by the PSOE and United We Can parliamentary groups could constrain banks’ ability to lend and erode competitiveness within the European market. The concerns emphasize how higher costs may translate into slower credit growth and reduced capacity to support Spanish households and businesses at a time of credit tightening.
CECA, which represents former savings banks that evolved into banks over the years, along with AEB and major lenders such as Santander, BBVA, Sabadell, and Bankinter, has signaled a willingness to engage in dialogue with the government and lawmakers during the regulatory process. The goal is to ensure that policy design aligns with practical lending needs and a stable financial environment across the single market.
Both associations note that they have studied the technical details of the proposed regulations and argue that negotiations should be grounded in the fundamental tenets of the Spanish tax framework. They highlight the principles of equality, non-discrimination, and economic capacity as essential to shaping fair and effective fiscal policy that can support growth without compromising stability.
In their communications, the groups emphasize that any reform in the tax system must balance revenue needs with the capacity of banks to finance investment, support small and medium enterprises, and maintain transparent, predictable rules for all market participants. They call for a collaborative approach that weighs potential macroeconomic effects, banking sector resilience, and the broader objective of reducing inflation without stifling credit creation.
Observers note that the banking sector has already faced a challenging environment characterized by regulatory changes, elevated interest rate risk, and competitive pressure from digital entrants. The current tax proposal is viewed as an additional cost that could be passed to customers through higher fees or tighter lending criteria, potentially affecting consumer access to credit and overall economic momentum. The debate continues as stakeholders seek a policy path that preserves stability while ensuring fiscal needs are met. [citation: AEB-CECA joint statement on tax implications in a volatile economic context]