Spanish banks reduced their stock of non-performing loans by €312 million in November 2025, while the overall delinquency rate remained at its lowest level since 2008, according to data published by the Bank of Spain and reported by Demócrata.

Figures show that the total amount of doubtful loans stood at €34.21 billion in November, down from the previous month. The delinquency ratio — the share of loans classified as doubtful relative to total credit — fell to 2.78%, marking its lowest point in more than 17 years.

The total volume of credit granted by Spanish lenders continued to rise, reaching approximately €1.23 trillion, reflecting ongoing credit extension to households and businesses.

Among different types of lenders, traditional banks, savings banks and cooperatives saw their bad-loan ratios improve, while some smaller financial institutions reported slight variations in their numbers.

Economists have attributed the decline in bad loans to both stronger economic conditions and active risk management by banks, including more effective debt recovery strategies.

Source: Demócrata
Edition and translation: Prime Yield