The April 2018 Bank Lending Survey in Spain

The results of the Bank Lending Survey show that during 2018 Q1 credit standards for new loans in Spain eased slightly in loans to households, remaining unchanged in loans to enterprises, while credit supply in the euro area grew across the board, although unevenly by segment. In Spain demand for credit from households grew and from enterprises remained stable, while in the euro area applications for all types of loans increased. Access to the financial markets by credit institutions has barely changed in the two areas. Credit standards both in Spain and in the euro area are now somewhat stricter than those seen on average since 2003, while in almost all cases they are similar to, or slightly laxer than, the average levels posted since 2010. The ECB’s expanded asset purchase programme has continued to contribute during the last six months to improving the liquidity and funding conditions of institutions in the two areas and to an easing of lending conditions, although it has also impacted profitability negatively. Spanish and euro area banks alike reported that the ECB’s negative deposit facility rate caused a reduction in net interest income in the last six months, as well as a generalised fall in interest rates and margins on loans and a slight increase in the volume of loans granted.