June 21, 2022
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In addition to the remaining effects of the pandemic, challenges associated with the geopolitical conflict between Russia and Ukraine, global inflationary pressures and the tightening of financial conditions worsen the current risk scenario.
In April 2022, the balance of traditional bank deposits exhibited a real YoY growth rate of 1.5%, while outstanding credit granted by commercial banks to the non-financial private sector (NFPS) grew 0.9% in real terms, the first real growth rate recorded since July 2020.
In May, monthly inflation was 0.84% and annual inflation was 9.07%, close to the expectations of market analysts and BBVA Research (0.80% monthly change).
In the Spanish banking system, 2022 will go down in history because several events will occur (or are already unfolding) whose impact on the industry’s results are hard to gauge. Two such events are the war in Ukraine and the end of the grace period for ICO-guaranteed loans.
Credit to households has shown greater recovery and is the main impulse for the growth of financing to the private sector, while the weakness of business financing lingers. Likewise, demand deposits maintain their dynamism, while the growth of time deposits remains in red figures.
Inflation in April was 1.25% on a monthly basis and 9.23% on an annual basis, making it the highest in the last two decades. Market analysts were surprised by the result, which was not only above the estimated average, but also above the maximum of the range of expectations recorded in the BanRep survey.
In March 2022, the balance of traditional bank deposits registered at a nominal annual growth rate of 7.8%, while the balance of the current credit portfolio granted by commercial banks to the non-financial private sector (NFPS) registered a nominal annual variation of 6.9%.
The Consumer Price Index for the city of Lima increased 0.96% MoM in April. This is a result of the increase in the prices of food and non-alcoholic beverages and transportation, in a context of higher international prices of foodstuffs and fuels.