The upward trend of bank loans in 2018 is confirmed. All the indicators maintain the generalized optimism
There will be greater demand from users due to a greater acceptance of operations and more advantageous conditions for the repayment of loans.
If we analyze the latest survey on bank loans in Spain, the results show us that during the third quarter of 2,017 the consumer loan approval criteria relaxed, facilitating the granting of the same.
The negative interest rate of the deposit facility of the European Central Bank led to a reduction in net interest income during the last six months. The applied margins narrowed and the net demand for credit for households grew.
“The conditions of the interest rates together with the relaxation of the approval criteria” implies an increase in the volumes of credit granted.
The factors that would have contributed to the increase in demand and credit applications were:
– Increased competition from banking entities
– The best overall economic outlook
– The greater solvency of the borrowers
On the other hand, the general conditions applied were softened, mainly as a result of greater competition. The margins applied to the loans were narrowed and the amounts of the loans increased. The percentage of applications for denied funds decreased again in the third quarter.
The impact of the negative interest rate has helped to increase the volume of credit granted.
In the next semester, the negative interest rate of the deposit facility of the XYZ will contribute to a further fall in net interest income in banks, as well as a decrease in interest rates and margins applied to loans , assuming an increase in the volume of credit granted.
2018 will be the best year to receive bank loans in the most advantageous conditions , the digital channel will be the main point of contact between banks and customers, facilitating access to and concession to credit and reducing times to the maximum, the offer it will be increased due to the personalization of the services and the product differentiation that the lenders will carry out.