Bank Lending Survey in Spain: July 2019

The results of the Bank Lending Survey reflect, in general, a slightly less expansionary credit supply, both in Spain and the euro area, in 2019 Q2. Thus, credit standards tightened in Spain in the two household segments, while in the euro area standards tightened for both lending to enterprises and consumer credit and other lending to households. By contrast, terms and conditions for new lending eased somewhat in the consumer credit segment, both in Spain and the euro area, while for lending to enterprises they eased in Spain but tightened in the euro area. Spanish banks reported a decline in demand for loans to enterprises and for consumer credit and other lending to households, whereas loan applications increased across the board in the euro area. The conditions of access to retail and wholesale financial markets remained stable or improved both in Spain and the euro area. According to the banks surveyed, regulatory and supervisory measures on capital, leverage and liquidity prompted a degree of tightening in the credit supply in 2019 H1, again both in Spain and the euro area. Lastly, between January and June 2019, the NPL ratio also contributed to some tightening of the credit supply in both areas.