Demand for credit from Spanish banks rose in the fourth quarter of 2014 and is expected to continue on that trajectory for the first quarter of 2015. The demand is mainly focussed on businesses and domestic households and is above the EU average. This is in line with the latest mortgage lending figures which showed that demand in Spanish property is staging a tentative recovery.
Analysts at Bankinter say while lending conditions are improving, Spanish banks are not yet at a point where credit is flowing freely.
“From the point of view of risk management, Spanish banks are being more conservative than other EU institutions. In Spain, relaxation is only being observed in the consumer segment of the market, versus a more generalised relaxation in the rest of the EU.”