Spanish banks: Renewed strength and credibility in wholesale markets
Spanish banks
Fecha: noviembre 2025
Santiago Lago Peñas
SEFO, Spanish and International Economic & Financial Outlook, V. 14 N.º6 (November 2025)
Spanish banks have become increasingly active and reliable players in fixed-income markets, consolidating the progress achieved since the financial crisis. Recent issuance patterns show that refinancing operations and regulatory adaptation, particularly to meet MREL requirements, have replaced the liquiditydriven issuance of previous years. The funding mix has shifted decisively toward unsecured instruments, signaling both restored market trust and improved capitalization. Smaller and medium-sized institutions have also expanded their footprint, achieving a level of market access that was previously reserved for the largest entities. The decline in spreads across senior and subordinated debt confirms the sector’s regained credibility, though continued reliance on wholesale funding underscores the importance of maintaining high profitability and resilient balance sheets in an environment of stillelevated rates and evolving regulation.