Delinquency Rates in Banks Fall to 13.5% in February

22/04/2014 – Expansion

In reference to data made public by the Bank of Spain, in February the banking delinquency shrank to 13.5%, while in January it showed 13.59%. Overall delinquency rate, including the data from the Official Credit Institute, has post 13.42%, by one bp less than a month before.

The decline is ought to be assigned to the fact that the number of soured loans diminished faster than credits did. Precisely, the unpaid loans of banks, savings banks, cooperatives and financial institutions closed February with €193.528 million, by €2.028 million less than in the previous month.

In 2013, there was also a decline observed in the same period of the year, however then all the bailed-out banks transferred their deliquent assets to Sareb (Spain´s bad bank).

In February 2014, credit letting fell by almost €5.6 billion (to 6.4%) if compared to January that marked one percentagel point more. However, new financing exploded this year, while in 2013 it was still asleep. Everything points to prompt diminishing of the delinquency rate, expecially that the payments (mostly of mortgages) will be more frequent than granting new loans.



Original article: Expansión (by M. Romani)

Translation: AURA REE