It is the lowest level since December 2008, when it was 3.37%
At the end of September, non-performing loans, supported by the Spanish financial system as a whole, reached EUR 46,325 million, representing a non-performing loan rate of 3.79%, lower than that of the previous month and continuing the downward trend that followed practically in almost every month. The questionable debt ratio ended last year at 4.29% and has therefore fallen by half a percentage point in the first nine months of the year and by 6,223 million euros, according to preliminary data from the Bank of Spain. The rise in interest rates, and in particular the Euribor, will not worsen the timely payment of loans for the time being. Gone are the times when the default rate reached double digits, like in 2014 when it hit a record 13.78%.
The combined loan portfolio of all financial entities decreased to EUR 1,223 billion in September, slightly less than the EUR 1,225 billion in August, which is EUR 1,596 million less than the previous month, but EUR 9,972 million more compared to the September 2021 volume.
The volume of bad loans, considered as such after three consecutive months of default, amounted to EUR 46,325 million in September, 1.93% less than in August and 12.30% less than in September 2021, when it reached EUR 52,825 million.
The figures include the methodological change in the classification of financial credit institutions (EFC), which are no longer considered credit institutions since January 2014.
Without the change, the September arrears would be 3.88%, as the credit balance in that month was EUR 1.191 trillion, excluding EFC credit.
The data broken down by type of entity indicates that the dubious ratio of deposit-taking institutions as a whole (banks, savings banks and cooperatives) ended September at 3.70%, lower than the previous month’s 3.77% and 4.29% from a year before.
Delinquencies with financial credit institutions (EFC) – entities that mainly provide financing for the purchase of cars, furniture, televisions and other consumer goods – stood at 6.29% in the ninth month of the year, compared to 6.30% in August and 6.51% in September last year.
According to data from the Bank of Spain, the provisioning of all credit institutions fell to 32,738 million euros in September, with a decrease of 253 million euros in the month and 6,224 million euros in the year.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
