The Spanish bank saves 1,500 million due to low regeneration of deposits

The lowest fee for household and business savings in Spanish banks as for banks in the eurozone, this means that Spanish entities save almost 1,500 million euros, according to calculations made by Europa Press based on statistics from European Central Bank (ECB).

Specifically, households stop receiving EUR 924.16 million since Spanish entities have lower interest rates on liabilities than their European counterparts. Non-financial companies stop receiving compensation of 547.97 million euros.

Total savings were achieved (1,472.13 million euros). calculation of differences in interest rates of subjects in Spain and the eurozone for the month of February taking as a reference the obligations in the balance sheet for that same month. Since both deposits and interest rates fluctuate every month of the year, the amount saved by Spanish entities can vary throughout the year.

According to ECB data, Spanish households had EUR 925.5 billion in demand deposits in the second month of the year. Lower incomes in Spain (0.08%) compared to Europe (0.12%) mean that Spanish families lose €370.2 million.

A lots of the spreads on time deposits are higher. On deposits up to two years, Spanish entities offer interest of 0.30%, while European entities offer 1.07%. Given that Spanish families had 60,000 million in this type of savings product, the lower compensation of banks in Spain implies that households received 462 million less in compensation

As for deposits for more than two years, households had parked 7,600 million, which in Spain are realized at 0.51 percent, while in Europe the offered interest is 1.72 percent. This difference implies a fee in Spain that is EUR 91.96 million lower.

The difference in savings fees was one of the issues analyzed last week by experts from Álvarez & Marsal, when they published their annual report ‘Puls banka’. In his opinion, “sooner or later” the interest rates offered to clients will have to rise, and the rise in interest rates will also be passed on to deposits.

In fact, a senior director of a consulting firm Eduardo Areilza considers that this situation of low compensation may involve reputational risks for entities. Not only because they offer a low fee in the context of high inflation and interest rates, but also because the entities have been marketing investment funds to clients who have been looking for a certain fee for their savings for some time. And these types of products, unlike deposits, can cause losses.

company deposits

In the case of non-financial companies, the liability fee has lower differences compared to Europe, but despite this, the average interest rate offered in Spain is lower than in the rest of the Eurozone.

Also, according to ECB data consulted by Europa Press, non-financial corporations had 269,100 million euros in demand deposits in February, with a fee of 0.15% in Spain. If the average interest rate in Europe (0.31 percent) were applied to these funds, Spanish companies would receive 430.56 million euros more.

In the case of deposits with a term of less than two years, they are charged at 1.67% in Spain, compared to 1.94% in Europe in February. Considering that in that month Spanish companies had 38,800 million euros parked in this type of product, this represents a negative difference of 109.76 million euros.

At the end of February, non-financial companies also had 4.5 billion in deposits with a maturity of more than two years. In this case, they stopped receiving only 7.65 million euros, since in Spain the fee is 1.49%, compared to an average of 1.66% in the Eurozone.