Publications

The tightening steps of the CBRT in the aftermath of the March shock were followed by much tighter financial conditions and additional macro-prudential measures throughout April and early May. Deposit rates rose to their highest level since Dec24. Credit growth maintains its limited growth.

The weekly growth of FX-adjusted credits decelerated in the third week of September from 0.6% to 0.3% due to strong contraction in consumer credits in the overall sector.

2022 has been a year of transition for banking. It started off with a lot of dynamism, as the economic recovery was expected to consolidate, leaving the pandemic behind us. But the war initiated by Russia in Ukraine radically changed the course of events.

Over the last few months, an attempt has been made to build a simple but straightforward narrative, according to which the banking sector must make an additional fiscal effort due to the increase in its hypothetical extraordinary profits, with which to contribute to the necessary income agreement.

A few days ago, Bank of Spain published its latest financial stability report. In these half-yearly reports, the supervisor assesses the main risks and vulnerabilities to the stability of the Spanish financial system.

The crisis caused by COVID-19 is showing its first impacts on the banking sector. Our analysis assesses the impact on the sector of seven factors and its trends: monetary policy, digitalization, regulation, economic growth, new entrants, competitive landscape and government support.