Banks have a threefold function in society. On the one hand, they finance the economy under the best possible conditions. At the same time, they must also efficiently manage the savings of their clients, whether families, companies, or public administrations. And banks must provide the necessary payment methods for the economy to function, always adapting to their clients’ demands. In fact, anticipating them within the limits set by technology. Spanish banks perform all these functions efficiently in a highly competitive environment.
Could the Spanish economy grow as it is doing without such favorable financial conditions as the current ones? Let us move beyond the stereotypes that emerged during the crisis regarding financing restrictions. The most recent data show double-digit growth in new bank financing to families and companies.
The latest surveys for the first months of the year published by the Bank of Spain also confirm something we already saw at the end of last year: access to financing has ceased to be a problem for small businesses. The Bank of Spain itself, in its quarterly report on the Spanish economy, also shows how the indicator of corporate financial pressure for investment and job creation has returned to pre-crisis levels from nine years ago.
In the case of families, our legislation on customer protection requires banks to be responsible in granting loans. Banks must analyze the capacity to fulfill contracted obligations through a process of information that must be transparent. In this way, the principle of responsibility that both parties must have will be fulfilled. The interrelation between families and banks is clear. Spanish families recorded an increase in their net financial wealth last year to 188% of their gross disposable income (GDI). Bank deposits grew to 38% of the total, while investment funds accounted for 13% and social security instruments reached 17%. On the other hand, debt with banks represented 102% of GDI last year, with loans for home purchases accounting for 78% of the total.
