The Non-performing loan (NPL) ratio within the Spanish banking sector fell in November to 4.29%, marking a low since March 2009, according to provisional data from the Banco de España.

This downward trend is the result of a decrease in the total volume of bad loans in the bank’s sheets, which has been accompanied by an increase in total credit.

In November, the NPL ratio was 7 basis points (b.p) below the 4.36% recorded in October and 28 b.p. below the 4.57% of a year earlier. The gap is much wider than the peak set in December 2013, when it reached 13.62% of total loans.

Specifically, total credit in the sector increased by 1.03% in November to €1,226 trillion, a figure which, however, was 0.25% down on the previous year. 

The balance of doubtful loans fell by 0.73% in November 2021, to €52.6 bn. This fall was 6.37% compared with the total doubtful loans in the same month of the previous year.

Original Story: Rtve|Europa Press
Photo: Big Stock Photo
Translation & Edition: Prime Yield