The bank sees it as “positive” that interest rates have “peaked” and says the increase has meant some “contraction” in lending activity.
Kutxabank has noted a certain contraction in lending activity and also a “braking” of new business projects following the rise in interest rates in recent months.
The CEO of the entity, Eduardo Ruiz de Gordejuela, has indicated in an appearance in the Chamber of Bilbao that it is “bad news” for his sector that the economy is cooling and that “credit is shrinking” and therefore it seems that they are given “positive news” that interest rates “have reached their ceiling and that from that moment on the reductions are already being discounted”.
“Moderately positive interest rates are healthiest for the financial sector and also for the economy,” he added.
The head of Kutxabank has indicated that so far there have been no “disruptions” in defaults due to the increase in interest rates, but he notes a certain contraction in credit activity and also a “braking” of new projects. company.
On the other hand, he emphasized that the bank is focused on ensuring the sustainability of its activities and that to this end it will rely on various levers, such as the commitment to corporate banking, consumer finance, insurance, the energy transition or the private sector. banking.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
