Consumer lending: excess or normalisation?

In recent months, there has been some concern about the strong growth in consumer credit and the possible risk it poses to financial stability. In its latest Financial Stability Report, the Bank of Spain warns of the need to monitor it closely to ensure that the banks’ exposure to this segment of credit remains at reasonable levels. Indeed, consumer financing has grown by 40% between December 2014 and June 2018, and now stands at 85 billion euros (79% of the peak reached in 2008). Part of this strong growth can...

Monthly Report - Focus