Wednesday, 22 May 2024
WorldThe bank delinquency rate remains near the lowest since 2008

The bank delinquency rate remains near the lowest since 2008

The ratio of doubtful loans of Spanish banks contracted to 3.57% in the month of November, after having stood at 3.60% in October, according to provisional data published this Monday by the Bank of Spain.

The rate remains close to the minimum since 2008 recorded in the summer, when it reached 3.50%. Compared to the tenth month of 2022, the banks’ doubtful loan ratio remained 11 basis points lower, when it was at 3.68%.

The drop in the ratio is due to the fact that the stocks total credit, compensating for the slight increase in doubtful loans. Thus, there was a monthly increase of 17 million euros in the total doubtful loans held by deposit institutions and financial credit establishments, reaching 42,396 million euros. Compared to the same month in 2022, doubtful credit contracted by 2,974 million euros.

On the other hand, the total balance of credit granted stood at 1,186 billion euros, which implies that it increased by 9,396 million euros compared to October, reaching the highest volume since July. Compared to a year ago, credit contracted by 45,158 million euros.

The data broken down by type of entity reflects that the doubtful ratio of all deposit institutions (banks, savings banks and cooperatives) closed November at 3.45%, three basis points less than the previous month, although below 3. 59% from a year before.

For its part, the default ratio of financial credit establishments rose to 6.97% in the eleventh month of the year, higher than the 6.93% in October and above the 6.37% a year earlier.

According to data from the Bank of Spain, the provisions of the total credit institutions were reduced to 30,249 million euros in November, which represents a decrease of 0.18% compared to the previous month, and a fall of 6.13% with respect to November 2022.

Popular content

Latest article

More article