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What will affect the Mortgage System of Spain this year?

Posted by myestate on 26.05.2021

What will affect the Mortgage System of Spain this year?

The policy of the banking market in Europe turns 180 degrees under the pressure of controlling bodies and investors, demanding to rebuild the banking sector, due to the policies of the absorption of smaller banks. Witnesses were all the players of the Banking and Financial Market of Spain last year and the current one. Long-term negotiations between Sabadell and BBVA kept the participants of the European market and the Spaniards themselves in long tension.
The European Central Bank and in particular the Bank of Spain, which restored influence in the country, and the ECB want to solve the problem of the domestic financial sector in less than three years, which correlates with the so-called plan of “recovery of Europe’s economy after Covid».
And in these plans, large banks are one of the main players to restore the banking market in Spain. The President of BBVA Bank Carlos Torres, for example, before the purchase of Sabadell Bank’s purchase announcement: “The income received from the announced selling transaction will be used for” strategic options for increasing the share of shareholder value “. According to his statement, “growth opportunities” in countries in which the bank is the leader in the market is also planned.
Spain is a key market for growth through purchases, since its subsidiary in Mexico is the main source of profit, already has a market share, which it cannot exceed due to competition problems; Or in Turkey, the country in which the market would finish a new investment.
After the passing Mortgage Law in 2019, Spanish banks have become less willing to issue mortgages to individuals and legal entities. The issue of lending to the construction of residential facilities was also hard over the past two years.
Spain’s real estate market in anticipation of the “unleashing hands” to the sector by increasing the issuance of credit funds and reduce restrictions on issuing loans to individuals and developers as residential and commercial real estate.
Of course, the controlling authorities are in a hurry and want Spain to play a major role in the end of the restructuring of banks in the middle of 2021 or at least in the greater part.
However, this year is more steady to monitor changes in the banking market in Spain, since the mergers declared last year are not realized.

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