Publications

Banking intermediation revealed the effects of economic slowdown in August. Current loans growth to non-financial private sector waned to 5.1% in real terms annually, as the growth of its main components dwindled. While banking deposits growth came at 3.9% in real terms annually, a 1.4pp below the average growth in 1H25.

In July, credit growth to the Non-financial Private Sector increased (6.4% in real terms annually) supported by credit to companies in the construction sector and through credit cards. Traditional deposits growth accelerated too (5.1% in real terms annually), underpinned by greater dynamism in demand deposits.

In May, bank deposits and commercial bank lending to the Non-Financial Private Sector (SPNF) registered a widespread slowdown, influenced by weak economic activity and the fading exchange rate effect. Credit grew at a real annual rate of 7.4%, while deposits slowed to a real annual rate of 4.4%.

In April 2025, the fade out of the exchange rate depreciation influenced the lower dynamism of the balance of the current credit portfolio granted by commercial banks to the SPNF (8.2% YoY in real terms) and the balance of traditional bank deposits (6.1% YoY in real terms).

In February, outstanding loans to the non-financial private sector maintained double-digit annual growth, while traditional deposits slowed by 1.7% YoY in real terms compared to January. This trend is consistent with a context of anticipated foreign demand to avoid tariffs amid a local slowdown.

Despite the economic slowdown, credit granted by commercial banks to the private sector grew 14.4% YoY in nominal terms. The balance of traditional bank deposits also grew at a nominal rate of 10.2% YoY. In both cases, businesses were the main driver behind this growth.

Spanish banks are rapidly translating the reduction in official interest rates to new lending operations' interest rates, which benefits borrowers. In the case of deposits, the transmission is slightly slower than in the hiking cycle, which benefits depositors.