1. Evolution of the spanish credit market 2004-2015
Presentation of the article “Spanish Credit Market Activity Structure” by Ignacio Fuentes Egusquiza.
Course: Bank Management
Professor: Ana Blanco Mendialdua
Bank Management
7/28/2019

2. Evolution of the Spanish credit market from 2004-2015
Three phases:
Correlation with economic cycle:
Time frame (Phase)
Economic situation
Lending volume
Before crisis ( )
Expansion
Increase
During crisis ( )
Contraction
Decrease
After crisis (2013-today)
Recovery
Slow increase
Segment
Lending volume
Reason
Households (esp. home loans)
Adaption to economic cycle
Linked to the extraordinary increase before crisis
Loans <1mil.€ to non-financial coops.
Less responsive to economic cycle -> the most stability
Higher recurring nature
Continuous financial control
More limited access to non-bank financing
Loans > 1mil. € to non-financial coops.
Small correlation with economic cycle
Large one-off transactions
Non-bank financing
Bank Management
7/28/2019

3. Aggregate activity. Economic expansion Economic contraction
Relative changes in volume
Economic expansion
Economic contraction
Economic recovery
BANK MANGEMENT
26/10/2015

4. Evolution of the Spanish credit market from 2004-2015
More factors that let to the concentration process than the reduction of operational banks
Concentration process in Spain > than in other European countries
Need to correct the over dimensional size of the financial sector that existed before the crisis
Bank Management
7/28/2019

5. Conclusion Huge changes in the Spanish credit market due to the crisis
Reduction of operational institutions
Higher concentration of activity on the credit market
Change in lending volumes from different institutions
Activity in the credit market has followed this cycle: During economic expansion the amount lended was very high and growing; when the crisis began, lending registered a heavy decline and until late 2013 it hasn’t began recovering.
The structure of the credit market has also been affected by the crisis making it become more concentrated. This is caused by the re-structuring done because of the excessive size of the Spanish financial sector.
Data shows that the increase in the level of concentration hasn’t caused a lower competitiveness because loan-deposit gap in most segments is now at average historical levels.
Bank Management
7/28/2019