Spanish banks NPLs fall +60% since the highs of 2013

Spanish banks credit lending

J.L. M. Campuzano (Spanish Banking Association) | According to figures published last week by the Bank of Spain, the level of non-performing loans fell to 6.08% in October, 1.7 points lower than in September and far below the 8.41% a year ago.

It represents a new low in the level of non-performing loans in recent years. The fall has been more intense in the absolute figures of non-performing loans, accelerating its annual rhythm of descent to 28.4%.

In October a rhythm of decent was maintained in the balance of credit, with an annual fall of 3%, explained by the continuing efforts of households to reduce debt and the efforts of the banks to reduce the non-performing assets inherited from the crisis.

However, new credit grew in October at an annual rate of 12%.

The figures for doubtful assets has fallen more than 60% from the highs observed in 2013. The fall in non-performing loans marks an important achievement for Spanish banks, reinforcing their stability and improving their position to continue financing economic growth.