CaixaBank’s Board of Directors confirmed this Thursday the commitment to new support measures for distressed mortgage borrowers. The decision, taken with the agreement of the main employers in the sector, aligns the bank with the extension of the existing Code of Good Practice and a new framework that carries a two-year transitional regime.
CaixaBank was the first bank to adopt a precautionary package aimed at foreseeing and mitigating potential difficulties. Rising interest rates threaten some households with higher payments on their first home in the future.
Following weeks of discussion with the financial sector, the Cabinet approved the decree that expands the Principles of Good Practice to cover more vulnerable debtors affected by rate increases. The update also introduces new principles to ease the financial burden for mortgage borrowers who have higher incomes but face vulnerability due to higher rates.
The measures in the extension include five-year grace periods on mortgage principal and a rate cut to Euribor minus 0.1 percent if the increase in mortgage effort exceeds 50 percent. If the increase is less than 50 percent, the package provides a two-year grace period and an extension of the term up to seven years.
Calviño has urged banks to step up mortgage assistance, emphasizing that it is time for stronger action.
Other measures consider preserving these rights even if the credit is sold to third parties; borrowers may request payment deferral for up to twenty-four months from restructuring. If the debtor remains fragile after the first cycle, a second restructuring review may be requested.
Old Code
CaixaBank has been the most active participant in delivering assistance under the Code of Good Practice, approved in 2012 and still in effect today, accounting for about a third of industry operations.
CaixaBank’s president explained that the board decided to pursue new ventures because the bank plays a key role in supporting society and customers in distress. The commitment to social and economic well-being remains a core priority now and in the future.
CaixaBank’s headquarters are located in Barcelona.
The chief executive stressed that the bank is well positioned to continue helping families and businesses while mitigating the impact of economic disruption. He also highlighted the essential role banks play in the economy and society, noting that financial institutions fulfill a fundamental social function.
The bank emphasizes its long track record of supporting customers. In 2009, it launched an aid plan during the previous financial crisis, assisting hundreds of thousands of mortgage borrowers. It also supported thousands of customers with payment arrangements and carried a substantial share of operations under the Principles of Good Practice for the financial sector.
CaixaBank provided a pandemic-era moratorium on housing and consumer loan payments and supported housing rental relief through its subsidiary. The bank also maintains a stock of social housing for those in need.
Financial Inclusion Efforts
CaixaBank stresses its commitment to financial inclusion through the breadth of its branch network. It remains a leading presence in Spain, serving dozens of towns and thousands of municipalities. A significant portion of branches will operate in smaller towns by year-end.
The bank runs mobile office services across multiple regions, extending access to financial services in numerous municipalities. Throughout the year, CaixaBank has expanded its support for seniors by launching several initiatives that involve substantial investment to improve accessibility and service quality.
Measures include expanding the team serving senior clients, extending cashier hours, improving personal communication channels, upgrading ATMs for passbook users, and delivering a comprehensive digital skills training program with thousands of sessions.