The bank increased lending to companies in the first quarter and … – Yahoo Finance Spain

MADRID, 3 (EUROPA PRESS)

The major Spanish banks have increased lending to businesses in the first quarter and jump start hunting for SMEs, which require more funding to continue its activities, which will increase competition in the sector.

“The growth of requests for credit by SMEs It was higher than that of large companies in Spain, while in the euro area was similar. This is one of the main reasons why in our country there is greater competition in the financial sector to attract SMEs “, has told Europa Press XTB analyst Alvaro García-Capelo.

The expert noted that during the year an increase of short-term credit for SMEs and consumer “will very probably above Europe “, which will benefit the banks and that will make banks improve their offer.

” Banks like Popular, which focus part of its forces in loans to SMEs and consumption, see how increased competition reduces their market share “, has predicted García-Capelo, who predicts a” war “on the economic conditions of the loans in which all entities may pressure their favor.

BUSINESS SMEs

17.1%, is the Spanish Popular Bank with greater market share in SMEs, according to data from the latest tests conducted in October by the European Central Bank (ECB ) and the European Banking Authority (EBA).

During the first quarter, the entity headed by Angel Ron has attracted 27,500 new customers and freelancers and SMEs increased by 24 basis points total credit fee to 7.5%, underpinned by lending to companies.

But People is not the only bank that has taken the business of SMEs as a priority, because BBVA has started on the heels in granting credit. As of March, the ‘blue bank “has increased loans to SMEs 40%. Although Popular warns, “is not so easy to get into this business model We are at a clear competitive advantage.”

credit growth

Overall, the credit in Spain has increased. in the first three months of the year, both supply side and demand. On this basis, the industry predicts that throughout the year will be stable and may even pick up slightly at the end of the year.

“De met expectations for the year, loan applications increase both in Spain and in Europe, although more pronounced in our country is, “he noted analyst XTB, who pointed out that the improvement of conditions in both retail lending and wholesale will increase banking competition and increased supply of credit products.

“The conditions of the overall economy will maintain the increased demand in all areas and will be slow but steady increases in the remainder of the year with a possible accelerate the improvement the next year, “he noted.

So far, the country’s leading banks have granted more loans in the first quarter compared with the same period last year, especially in companies and consumption, leaving some mortgage credit relegated despite the slight recovery in the housing sector.

García-Capelo recalled that requirements for access to credit have been easing since 2014 broadly in Spain and Europe. While still “relatively tight” analyst projected to continue to decline this year.

“The program of asset purchases by the ECB has clearly permeated the financial position of institutions and therefore They have relaxed these measures and access to credit to non-financial corporations “, he stated the analyst.

Finally, the expert XTB recalled that the general conditions of access have been reduced in Spain and various financial institutions “are already in a war” differential to capture market share due to the context of low interest rates and the costs of funding sources

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