The risk of a financial crisis stemming from private credit in Europe is low for now, according to the ECB. This market remains small, and banks’ exposure is residual. However, other risks are being flagged, such as the conflict in the Middle East and its potential second-round effects.

Spanish companies have reduced their debt over the past decade, largely due to a contraction in bank credit. The performance of this type of credit has been negatively influenced by demand-side factors, especially weak levels of investment.