Bank Lending Survey of the Bank of Spain published today reveals that the English families have demanded less credit in the first quarter, mostly for home purchases.
The 10 financial institutions participating in the survey conducted quarterly by the regulator had already advanced in their estimates that changing the tax status of housing lead to a reduction in demand for mortgages. The first quarter results confirm this.
"The demand for funding for the purchase of property experienced a significant contraction, most notably in Spain than in the euro area," says the Bank of Spain. Has also declined, albeit smaller, the demand for credit for other purposes, which is explained by the worsening consumer confidence.
By speculate, banks and banks tightened lending criteria for families, "about the worsening outlook
on credit and by increased funding costs and availability of funds from institutions ". And this despite the fact that entities have claimed to have seen an improvement in wholesale funding markets (money and long-term debt) in the first quarter.
The situation was different for firms generally increased their demand for credit, though more moderately than in the rest of Europe. The supply of credit for this segment was stable, with the exception of long-term loans to larger companies, which hardened slightly.
English banks expected to leave unchanged the criteria for granting loans, both families and businesses this quarter, while the rest of the EMU predicted a slight hardening.
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