The year 2013 has been much more propitious for the financial institutions due to the return of the investors´trust in the Spanish market.
On the other hand, the deleveraging process going on within the sector reduces in a way the need of financing. As a consequence, the entities depend less and less on the financing from the European Central Bank (BCE). The three banks have decided to redeem their titles used as guarantors at auctions of the monetary financial institution, mainly mortgage agreements.
Since April BBVA, CaixaBank and Popular have redeemed debt of this type for the amount of 27.840 million Euros, according to the data provided by Expansión, made available by CNMV.
Out of the three banks, CaixaBank is the one which has been the most active selling for 12.700 million Euros, compared to BBVA with 9.840 millon and Popular with 5.300 million gains.
What is the benefit that the banks derive from sales of the mortgage agreements? The entities get rid of this kind of assets committed to their mortgage portfolios. Increase in such second line of liquidity or the policy to maintain own mortgage agreements in balance in order to enter the auctions of BCE, reduces the margin of issuing the debt among the investors.
The Mortgage Law restricts the issue of the loan agreements substituting for the mortgage portfolio possessed by a bank. (…)
The movement burgeoned when some entities had decided to adjust the value of their portfolios in regard to the postcrisis situation on the real estate market.
So did BBVA, pushing the value of the real estate properties giving coverage to its mortgages down. (…)
All the changes make sense while the institutions depend less on the financing from the BCE. In Spain, the long term debt has been reduced and concentrated in 2 auctions in 3 years, also known as Ltro, between 320.567 and 209.769 in 12 months, according to the data of the Bank of Spain. (…)