May 16, 2021

Catalonia recovers in a year 11,500 million in deposits but still far from the level prior to the 'procés' | Economy

Catalonia recovers in a year 11,500 million in deposits but still far from the level prior to the 'procés' | Economy

Bank deposits ended 2018 in Spain adding 1.23 trillion euros. It is 2.3% more than at the end of 2017 and the historical record of the series collected by the Bank of Spain. Almost all the autonomous communities have seen the money deposited in financial institutions grow in the last year. Particularly noteworthy is the growth experienced in Catalonia: it has gone from having 153,334 million euros to 164,783 million euros. That is to say, it recovers 11,449 million euros in 12 months, a growth of 7.47%.

With this rise, Catalonia compensates, although only partly, something of the sharp drop in deposits suffered in 2017, when the independence challenge accelerated the exit of money from banks. In that exercise, Catalonia left 29,120 million euros in 12 months, a 16% collapse. The exodus of money deposited accelerated especially in the last quarter of 2017, just after the illegal referendum on October 1. The banks with headquarters in that autonomous community, concerned about the legal security and nervousness of many customers, decided to take their headquarters from there. CaixaBank placed it in Valencia and Banco Sabadell, in Alicante.

At the start of 2018, there were still declines in deposits in Catalonia, reaching 152,196 million in March. After that, a certain recovery began, which has culminated in the second half of the year. Even so, the number of deposits is very far from the more than 200,000 million registered in Catalonia in 2013.

Annual record

As for the whole of Spain, until now the record of deposits at the end of a year was 1.22 trillion euros, registered at the end of 2010. In 2011, with the return of economic turbulence and the resurgence of the crisis in Spain , the number began to fall. It fell to 1.16 trillion at the close of 2012. Since then, the figure, with small ups and downs, had remained close to 1.2 trillion. In 2018, they end with their maximum of the series: 1,235 billion.

The rise and fall of bank deposits always responds to many variables. The measures that the European Central Bank took to calm European markets and secure credit are focused on maintaining interest rates (the price of money that banks borrow) very low. This means that the interests of the loans remain low, but also that the banks offer very low returns to those who deposit the money in the entities. Even so, in 2018 the deposits grew.

Apart from Catalonia, they also hit a stretch in the Canary Islands, with a growth of 7.51%, to 31,178 million euros; in Galicia, with a rise of 5.2%, to 64,272 million; and in Cantabria, with 4.4%, to 13,469 million.

On the contrary, they fall in Murcia, 4.8%, to 23.595 million; in Aragon, 2.6%, to 35,443 million; and in Valencia they remain stable at 106,561 million.


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