Spanish banks NPLs ratio fell to 8.22% in October, over one percentage point lower than a year earlier. Recently published figures from the Bank of Spain show that the pace of the decline in NPLs accelerated in October, registering an anual 12.52% drop (-11.64% in September).
Bank of Spain
All the sectors in the Spanish economy should contribute to improving competitiveness and efficiency, at the same time as cutting their debt. The Spanish banks are doing just that.
The current political scenario in Spain requires us to highlight some points about our country, using as a starting point the Bank of Spain’s interesting analysis called: “The impact of the uncertainty arising from the political tensions in Catalonia”.
Financial institutions, companies and households have continued to adjust the debt accumulated in the first half of the year. In the case of non-financial companies and households, their level of debt is increasingly closer to the European average, against a backdrop of greater economic growth and preference for home ownership.
Housing prices have grown 16% since end-2014, according to the Bank of Spain. This is after a decline of 37% in nominal terms (45% in real terms) since their peak at end-2007.
Foreign investors have increased their leadership in terms of how many shares they own in Spanish listed companies. They held 43.1% of the total at end-2016.
Pablo Fernández | The “Report on the financial and banking crisis in Spain, 2008-2014” published by the Bank of Spain last May is 252 pages long, but omits important facts and dates. The most surprising thing is that it seems to assume that the financial and banking crisis in Spain was the result of “contagion” from the ‘”international financing crisis”.
The Bank of Spain’s report on the financial and banking crisis in Spain has left the sensation that the institution, by action or by omission, has failed in its supervisory responsabilities and allowed practically all Spanish lenders to operate without any kind of control. The worst thing is that situation has continued. The bank has been the but of heavy criticism for how it acted with respect to Banco Popular’s resolution.
The main shortcoming of the Bank of Spain’s report on the Spanish banking crisis lies in its lack of a convincing analysis of the reasons why banks proved so vulnerable. It identifies their excessive exposure to residential mortgages, as well as their heavy reliance on external financing. But it fails to plainly set out what went wrong with the world’s financial sector.
The European bail-out of our banking system saved its skin. Now, a decade later, parliament and the Bank of Spain are investigating what happened.