Financial institutions in Spain reported a small year‑on‑year rise in lending to households and non‑profit groups in October, with total lending to families increasing to €702,461 million and corporate finance climbing to €952,534 million, according to new figures released by the central bank on Thursday. This data highlights the ongoing credit activity within the Spanish economy as it navigates a challenging external environment, including the effects of the war in Ukraine and rising price levels.
The month also showed a larger twelve‑month gain in lending to families, with net increases of €2,914 million in households and €10,355 million in financing to companies. Analysts note that the trajectory comes amid a period of elevated inflation and geopolitical tensions, which have influenced borrowing and investment decisions across sectors.
From a monthly view, household indebtedness decreased slightly in October by €543 million, or 0.08 percent compared with September. Likewise, corporate debt edged down by €1.554 million, a 0.2 percent decrease from the prior month, reflecting ongoing caution in some lending segments while other sectors show resilience.
consumer credit falls
Mortgages, which represent the largest share of total household debt, reached €516,287 million in October. This marks €3,189 million more than a year earlier, yet the pace slowed a touch from the previous month. The composition of household debt continues to favor housing obligations, which account for about 73.5 percent of total indebtedness, underscoring the central role of mortgage commitments in household balance sheets—an important metric for financial stability and consumer spend in the economy.
Consumer loans to households rose 1.5 percent in October compared with the prior month, reaching €95,644 million. The year‑over‑year movement in these consumer credits also reflects modest growth in everyday financing, even as other loan categories show mixed performance.
Loans taken by families for other purposes totalled €87,181 million, down from €88,173 million in the previous month. On an annual basis, this category shows a decline of about 2.6 percent, illustrating shifts in household credit needs and risk appetite during the period.
Debt securities are falling
On the financing side for non‑household borrowers, lending to corporations continued to show strength in October when compared with the same month a year earlier. Company borrowing from banks and other financial institutions rose, while debt securities issued by firms declined, signaling a preference for bank credit over marketable debt securities in this cycle.
Bank loans to companies reached €484,709 million in October, up roughly 1.3 percent from the year before, indicating ongoing reliance on bank funding for corporate activity. Debt securities outstanding fell by 5.3 percent year on year to €135,479 million, reflecting a shift away from equity‑like instruments in favor of more traditional funding channels. External loans to firms rose 3.6 percent year on year to €332,347 million, highlighting continued diversification of corporate financing sources as firms respond to funding needs and market conditions.