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Bank credit to firms returned to growth in 2025 after years of contraction, supported by lower interest rates, deleveraging, and a recovery in investment. The pace of expansion is moderate and uneven across sectors, with services and industry leading the improvement.

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.

Credit to the SPNF maintained double-digit nominal growth rates in May (11.4%) driven by the dynamism of the consumer portfolio, particularly in the automotive segment, and a rebound in business credit. This rebound stemmed from credit to the services sector all across the country.

The historically large China-US rate reversion triggered corporations to finance their businesses in RMB due to its lower funding costs compared to USD, which had been the historical norm for corporate financing.

The Banking System maintains capital and liquidity levels much higher than regulatory minima. The dynamism of bank financing in 2023 was observed in all sectors (public and private), through various instruments (credit and securities) and was accompanied by higher credit provisions.

In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.

In 2Q22, the recovery of credit activity was reflected mainly on the financing of households (consumption and housing), while financing to companies still shows slow dynamism. This recovery was supported by the sustained growth of formal employment and wages that partially offset the environment of higher interest rates.