From the latest bank lending survey prepared by the European Central Bank, one might reach a conclusion as simplistic as banks restricting credit. However, the facts are very different. <\/p>\n
When observing the most recent data on bank financing to companies in Spain, greater credit dynamism is evident, both due to increased corporate demand in the face of wholesale market instability and a precautionary attitude toward an uncertain scenario. Bank credit to households has remained at a stable level in recent months. <\/p>\n
It is important to remember that the results of the monetary authority’s survey are, in essence, a qualitative indicator\u2014that is, opinions and expectations\u2014which in no way quantifies the supply of financing.<\/p>\n
Furthermore, this data shows similar behavior among the main European countries, reflecting the prudence of institutions and determined by a rapid return to normality in monetary policy.<\/p>\n
The survey specifies that, within the banks’ function of applying official interest rates, recent increases are not being fully passed on, and this can be verified by the fact that margins are narrowing. Banks have also faced higher financing costs. <\/p>\n
In this situation, the supervisor reiterates the need for banks to exercise extreme prudence; it is concerned about the future impact that profitability and solvency may suffer in a complex environment such as the current one.<\/p>\n
Preserving the strength of banks today as a key resource to drive the necessary economic recovery is essential.<\/p>\n
And of course, protecting the customer is a priority for banks. Their commitment is to offer the best possible financing in a responsible manner. <\/p>\n