January 2021 Bank Lending Survey in Spain

18 Pages Posted: 27 Jan 2021 Last revised: 12 Feb 2021

Date Written: January 19, 2021

Abstract

According to the Bank Lending Survey, during 2020 Q4, both in Spain and in the euro area there was a slight contraction in the credit supply, linked to banks’ higher risk perceptions, against a background of a worsening economic outlook, which was also reflected in lower demand for loans. These trends were recorded in most of the segments analysed. In a similar vein, according to the banks responding, the NPL ratio contributed in both areas to a slight tightening of credit standards in loans to firms and consumer credit and other lending to households. In 2020 H1, credit standards and the terms and conditions on loans with government guarantees eased considerably in both areas, while a contraction was observed in the supply of loans without guarantees in the same period. Furthermore, applications for loans with guarantees rose robustly between January and June, both in Spain and in the euro area, owing to firms’ higher liquidity needs in those months and the need to build up precautionary liquidity buffers, while the demand for loans without guarantees dropped significantly.

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

JEL Classification: E51, E52, G21

Suggested Citation

Menéndez Pujadas, Álvaro and Mulino Rios, Maristela, January 2021 Bank Lending Survey in Spain (January 19, 2021). Banco de Espana Article 01/21, Available at SSRN: https://ssrn.com/abstract=3774135

Álvaro Menéndez Pujadas (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Maristela Mulino Rios

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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