Análisis financiero

After one year of intense interest rate increases, coupled with very slow pass-through to deposit rates, households have moved decisively to reconfigure their savings, and also
their borrowings. In this process of recomposition of household financial flows and the search for an alternative to deposits, the early cancellation of debts, especially variable rate mortgages, which are undoubtedly the most affected by the rise in interest rates, has
gained increasing significance.

In what looks to be the tail end of the monetary policy tightening cycle, the insurance business in Spain is staging spectacular growth in revenue (premiums), fuelled by life
insurance products. With rates now looking more likely to stay high for longer, momentum in these products is expected to continue; however, from a broader perspective, the sector is likely to suffer, particularly in the non-life business, from the economic slowdown and high costs of claims in the motor insurance segment.

The ultra-expansionary monetary policy in place until 2021 had the obvious benefit of providing official liquidity at a time when the banks were finding it hard to raise it privately. The disappearance of that official liquidity will foreseeably translate into higher deposit
betas across the eurozone, including in Spain, where the process is already beginning to accelerate, albeit with a lag relative to the eurozone average.