Tags: Spanish | Lending | Falls | Record

Spanish Lending Falls Most on Record as Deposits Also Decline

Friday, 18 Nov 2011 02:16 PM

Spanish lending fell an annual 2.6 percent in September, the biggest decline since the Bank of Spain’s records started in 1963. Deposits also slid.

While lending rose 0.05 percent from August, the annual decline was the sharpest recorded on the regulator’s database with data on lending going back 48 years. Bank deposits fell 0.2 percent in September from August to the lowest level since May 2010, the Bank of Spain said.

Financing stresses as Europe’s debt crisis deepens are contributing to tighter credit conditions as lenders such as Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA allow their Spanish loan books to shrink. Higher financing costs and a weaker supply of loans are hitting the growth of the economy, which stalled in the third quarter, undermining confidence in the government’s ability to meet targets on cutting its deficit.

The decline in deposits from September a year ago was 1.6 percent, the regulator said. Deposits have been slipping month- on-month since June and have fallen 2.3 percent since their peak this year in March of 1.43 trillion euros ($1.93 trillion).

Spanish banks have stepped up competition to attract customer savings this year as an alternative to wholesale debt markets, which have frozen as contagion from the sovereign debt crisis spreads.


© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Markets
Spanish lending fell an annual 2.6 percent in September, the biggest decline since the Bank of Spain s records started in 1963. Deposits also slid.While lending rose 0.05 percent from August, the annual decline was the sharpest recorded on the regulator s database with data...
Spanish,Lending,Falls,Record
210
2011-16-18
Friday, 18 Nov 2011 02:16 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved