MADRID, 29 Nov. (EUROPA PRESS) –
Spanish banks “are lagging behind” when it comes to transferring the rise in interest rates to deposits, according to the vice president of the European Central Bank (ECB), Luis de Guindos.
“In some countries, banks are rushing to adjust interest rates on deposits, and in others, like Spain, they are lagging behind,” he acknowledges in an interview with the Belgian newspapers ‘De Standaard’ and ‘La Libre Belgique’. .
In this sense, the former Spanish Minister of Economy insists that when the ECB raises interest rates, “it is for borrowers and savers”, so if interest rates have increased, the remuneration of deposits is expected to do the same. same.
“The remuneration of savings accounts should reflect our interest rates,” defends Guindos, for whom this process is part of the transmission of monetary policy, since if savings become more attractive, consumers will spend less, which It will reduce demand and that is what is intended to reduce inflation.
However, the vice president of the ECB acknowledges that banks are being seen to be delaying the transfer of higher interest rates to savers.
“They can do this because they still benefit from abundant liquidity right now. But we are also taking steps to reduce excess liquidity, so that higher interest rates on savings accounts become a reality sooner or later.” , he warns.
Thus, for Guindos it is likely that the profitability of the euro zone banking sector will fall again in the long term due to the slowdown of the economy, which will increase bad debts, in addition to the impact of having to pay more to attract deposits.
“High bank profitability is not sustainable. In fact, the financial markets are already convinced of this, since the valuations of bank shares do not in any way reflect the expectations of high profits,” he concludes.?
