Financing the economy, households, and businesses is the primary responsibility of banks. Their objective is to offer the best possible financing in a responsible manner. To this end, they assess financing demand and consider repayment capabilities, thereby aiming to fulfill the dual purpose of protecting the client and maintaining the health of their balance sheet. It is essential to preserve the strength of banks as a key resource to continue driving economic growth and prosperity. <\/p>\n
So far this year, Spanish banks have provided \u20ac61.6 billion in new credit to households and \u20ac198.7 billion to businesses. This flow of new financing to the real economy occurs in a context of economic uncertainty and a rapid return to normal official interest rates, as decided by the ECB to combat inflation. <\/p>\n
The monetary authority’s latest lending survey shows two conclusions common at the European level: a sharp decline in financing demand and banks’ prudence. These assessments are reflected in the numbers, where new financing has moderately decreased compared to the previous year. <\/p>\n
Banks are the transmitters of the monetary policy designed and executed by the ECB, which has seen the largest increase in official interest rates in recent history, although banks are not fully passing this on to loans. In fact, in this situation, the supervisor reiterates the need for institutions to exercise extreme caution; it is concerned about the future impact on profitability and solvency in a complex environment like the current one. <\/p>\n
It is obvious that financing is essential for the economy not to stall. But it is also important that its management by businesses and households, on the one hand, and by banks, on the other, is appropriate to avoid generating problems that do not currently exist. <\/p>\n