Posted September 02, 2015 & filed under costa del sol property news marbella real estate mortgage in spain spanish mortgages spanish real estate news -and- lifestyle
Commercial Euro zone banks eased lending criteria on Spanish property and to businesses, according to the survey for the second quarter made by European Central Bank (ECB).
In the case of credit to businesses, the percentage of banks relaxed their lending requirements (-3%) was significantly lower than the first quarter (-10%), although higher than industry expectations.
As for loans to households for house purchases, banks in the euro zone eased its criteria for granting mortgages (-9%), compared with slight tightening in the previous quarter (2%).
In both cases, competition between banks was the determining factor behind the trend easing of lending conditions.
Meanwhile, demand for credit from companies in the euro zone increased substantially (13%) due to current levels of interest rates. In turn, demand for mortgages continued to increase significantly (49%), both due to low interest rates and the prospects of the housing market.
According to the survey, the Spanish authorities made no changes in their criteria for lending to businesses and households, following the trend of the first quarter.
A story in demand, 20% of companies reported positive demand for corporate credit, compared with 30% in the first quarter, while demand for mortgages remained stable, following an increase of 11% in the previous three months. Among the other major economies of the euro, German banks tightened their lending standards for companies (3%), after relief for the first quarter (-3%), while in the case of mortgages increased restrictions in line with the first quarter (3%).
In the case of France, banks loosened lending standards to enterprises (-2%), although less than in the first quarter (-7%).
Meanwhile, Italian banks eased significantly (-25%) the conditions of loans to businesses, in line with the survey for the first quarter, as well as loans to households for house purchases (-38%).
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