Heads and tails in the banks' bad debt balance. The sector managed to maintain the general default rate at 3.5% in July, a minimum level that it already reached the previous month and which is still below the 3.59% in May. However, non-payments grew in June in credit intended for the acquisition and rehabilitation of housing for households to 2.49%, above the 2.38% at the end of March.

This is reflected in the data published this Monday by the Bank of Spain, according to which delinquency in the financial sector – deposit institutions and financial establishments – remained stable, although it remains at minimum levels since 2008..

The balance is not trivial taking into account the context of inflation and rate increases by the European Central Bank (ECB).. In fact, compared to July 2022, the month in which the Eurobank began to increase the price of money, the delinquency rate has decreased by 0.35 points, to 3.85%.

The total count of loans considered doubtful – with at least three consecutive unpaid installments – stood at 41,774 million in the seventh month of the year, 0.9% less than in the previous month, which translates into 399 millions more. In an annual comparison, doubtful loans decreased by 11.9%, with 5,661 million less.

However, defaults on mortgage loans have been increasing throughout the year, as they went from 2.37% at the end of 2022 to 2.38% in March and now to 2.49%.

The delinquency of bank credit for consumption also rose, going from 4.35% at the end of March to 4.38% in June.

In the case of delinquency on loans granted to the development and real estate sector, it rose in the second quarter of the year and stood at 3.46% at the end of June, compared to 3.44% in March.