October 2020 Bank Lending Survey in Spain

Abstract

The latest Bank Lending Survey results show a widespread contraction of credit supply both in Spain and in the euro area in 2020 Q3, which would be linked to increased risk perception. On the demand side, demand from firms fell in both Spain and the euro area following the marked increase recorded between April and June. Conversely, applications for loans to households for house purchase rose both in Spain and in the euro area, while applications for consumer credit and other lending continued to decline in Spain, albeit at a considerably slower pace than in the previous quarter, and increased in the euro area as a whole. Banks consider that monetary policy measures continued to contribute overall to an expansion of credit supply.

Keywords: funding, credit, loan supply, loan demand, credit standards, terms and conditions for loans, financial markets.

JEL Classification: E51, E52, G21.