Articles
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The effects of the pandemic and inflation crisis on Spanish corporates’ funding gap
5 June 2024
Significant changes in the dynamics of the supply and demand for credit are disproportionately increasing the financing needs of Spanish SMEs and microenterprises, while increasing constraints for access to credit, thus notably widening their financing gap. Public financial instruments, both at the national and regional level, could serve as a key economic policy tool for lending financial support to the productive sector at a time of heightened uncertainty.
Business dynamism in Spain in the wake of recent crises
Since its deregulation 50 years ago, the Spanish banking sector has been shaped by significant structural transformation as a result of the need to adapt to an ever-changing environment, to which it has demonstrated resilience and flexibility. On top of profitability pressures, the management of risks under the growing regulatory push to increase solvency, on the one hand, and technological challenges, on the other, remain the most important issues facing the Spanish banks in the years to come.
Autores: Xifré, Ramon
Tags: Business dynamism
Spain’s private sector debt service ratio: An international comparison
The rate tightening embarked on by the ECB in mid-2022 has had a negative impact on debt sustainability for both Spanish corporations and households; however, the ultra-low rate environment until 2022, together with ongoing private sector deleveraging, offset the spike in interest rates such that debt service costs did not increase in 2023. As a result, last year, debt service for both Spanish corporations and households, at 34.7% of gross operating surplus and 5.6% of gross disposable income, respectively, remained low relative to international standards.
Autores: Maudos, Joaquín
Tags: Private debt
Spain’s household and non-financial corporate (NFC) accounts for 2023
Whereas in 2022, corporate income registered significant growth, nearly revisiting pre-pandemic levels, in 2023, it was household income that was more dynamic. By comparison with 2019, in nominal terms, the income gap between the non-financial corporate (NFC) and household sectors widened, revealing an incomplete recovery in the corporate segment compared to solid growth in household income.
Autores: Fernández, María Jesús
Tags: Non-Financial Accounts
Interest rate risk hits central banks
The interest rate risk deriving from the mismatch between asset and liability maturities and/or repricing, which had spread across the US banking system one year ago, has now hit the central banks – with some reporting zero profit, or even losses in 2023. While this phenomenon is not expected to have implications for financial markets stability, there may be important implications related to fiscal policy and monetary policy settings going forward.
Autores: Berges, Ángel, Jiménez, Salvador
Tags: Rate risk
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