Spain: Corporate and household lending continue to fall, down 3.6% and 2%

Eurozone banks deposit facility rate.Euro coins and notes

In line with the +0.1% year-on-year rise in M3 in December (its first increase since June 2023), lending to the private sector increased +0.5% year-on-year vs +0.4% in November, mainly thanks to a rebound in corporate lending (+0.4% vs 0% in November). The ECB released Eurozone private sector lending data on Friday, with an increase of €2.6mm in December (+0.5% year-on-year) thanks to a rebound in corporate lending (+0.4% vs 0% in November) and despite a slight decline in lending to households (+0.3% vs +0.5% in November).

Among large European economies, the divergence between the growth of French (+2.4%) and German (+1.4%) corporate loans and the fall in Spanish lending (-3.6%) and Italian (-3.9%) lending. Similarly, lending to
households is also positive in Germany (+0.6%) and France (+1.4%), but
negative in Spain (-2%) and Italy (-1.3%).

The exception to this divergence between core and peripheral countries is in consumer credit, where the lowest growth rate is in German credit: +0.9%, in contrast to +5.4% for Italian credit and +2.1% at the European level.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.