Celtic Growth in Consumer Credit: February 2024 Delivers Mixed Signals
Financing offered to households and nonprofit institutions in Spain slipped by 2% in February 2024 compared with February 2023, totaling 677.961 billion euros, while lending to businesses fell by 1.4% to 919.954 billion euros, according to Banco de España data released this Monday.
Compared with February 2023, household lending declined by 14.512 billion euros and business financing by 13.030 billion euros. This shift unfolds amid geopolitical tensions, rising prices, and higher interest rates that are reshaping borrowing behavior across the economy.
On a month-to-month basis, household debt decreased by 1.090 billion euros in February versus January, a 0.2% drop. Corporate debt also eased, standing 511 million euros below January’s figure.
Credit for Consumers Rises, But Mortgage Debt Falls
Mortgage loans, which represent the largest share of household indebtedness, totaled 494.157 billion euros in February 2024, a decline of 14.280 billion euros from the previous year and a 2.8% drop.
Despite this annual decrease, Banco de España’s data show that home-related credit continues to dominate households’ debt, accounting for roughly 73% of total debt. Meanwhile, consumer loans for personal consumption rose by 3.9% year over year to 98.568 billion euros, while loans for other purposes reached 81.806 billion euros, down from 85.833 billion a year earlier.
External Financing to Companies Sees a Rise
In February 2024, corporate financing declined year on year due to lower bank loans and debt securities, while external credit expanded during the same period.
Specifically, bank loans to companies stood at 453.083 billion euros in February, down 4% from February 2023. Debt securities fell by 0.6% to 132.314 billion, and external loans rose by 2.1% year over year to reach 334.557 billion.
Across these segments, the debt picture shows a clear tilt: households still shoulder the majority of indebtedness, while firms increasingly rely on international borrowing and external funding to support operations and investment.
Citations: Banco de España data on February 2024 household and corporate credit and debt profiles, including changes versus January 2024 and February 2023, and the breakdown by loan type and source.