• Thu. Jan 27th, 2022

World Observer

Your Wide Network

Manchegos And Navarrese, Ones That Increased Bank Savings The Most In Pandemic

BySam Brad

Aug 28, 2021

The restrictions due to the pandemic and the fear of economic uncertainty have driven savings for companies and families, but growth has not been the same in all regions. According to data from the Bank of Spain, deposits and bank accounts rose between March 2020 and March 2021 (practically the entire period of mobility limitations and States of Alarm) by 8%, that is, by more than 100,000 million. A trend that has continued in the following months.

During this period, the La Mancha and Navarrese were the ones that increased the balance the most in the entities, with increases of 13 and 12.5% ​​respectively , percentages that are considerably far from the growth experienced in other communities. In the Balearic Islands the increase was barely 1.4% , while in the Canary Islands it was 3.8% , well below the national average.

Catalonia, one of the communities where restrictions have been and are stricter due to the rise in infections, also recorded a strong increase in money deposited in banks, as the amount increased by 11.6%. In Melilla, this variation was 12.2%.

In the rest of the regions, the growths oscillate between 5 and 10%. It should be noted that in Madrid the rise was 7.3% despite the fact that it has been the region with the least limitations throughout the period, since it has allowed the opening of bars and restaurants, among other measures.

Economists and banks hope that all this accumulated savings will serve in the coming months to underpin the recovery of the economy , through higher consumption and greater business investment. A factor that, in addition, will join the funds that have begun to arrive from Europe for transformation projects.

Less spending on vacations
In total, companies and families accumulated more than 1.2 trillion euros in March, an amount that, according to the latest aggregated data, has been increasing , especially due to the money reserved by households, which for the first time since the beginning of the financial crisis have saved in July, a month in which traditionally this item falls as a result of the extraordinary costs of vacations.

The sum of deposits and sight accounts of individuals reaches 942,000 million. The available resources of non-financial companies, on the other hand, have remained flat or down lately and stand at close to 300,000 million.

After the growth, the autonomous community with the highest bank savings is Madrid , due to its population level it already has a greater number of companies domiciled, especially multinationals. The capital region accounts for 27.3% of the total amount, with 282,000 million, figures that are well above other regions with higher population density and also with an important industrial fabric, such as Catalonia, whose data represents 14% of the Spanish set, with less than 200,000 million. Andalusia and the Valencian Community, for their part, have 10 and 8.45% of the total, with 140,000 and 118,000 million.

The rise of electronic banking
The statistics of the supervisory body also reflect the rise of electronic banking in this niche of activity. The deposits and accounts accumulated by entities through this system now exceed 50,000 million. Specifically, they reach 52,012 million, after experiencing an increase of 6.8% in twelve months, thus raising their share to 3.72%.

All the money that is being saved occurs at a time when returns are zero or practically zero, due to the negative Euribor and the policy carried out by banks of not remunerating deposits, although in 2021 at some point product the interest rates they pay have increased. This rise has occurred mainly in deposits with a term of between one and two years , the rate of which has risen to 0.46%.

For the rest of the accounts, the banks still prefer to maintain the strategy of not paying interest and even charging less connected clients and with more immobilized funds. At the moment, only three entities apply negative rates to individuals from a certain amount .

These are ING , BBVA and Caja de Ingenieros , which defend their margins through this pricing system. The rest of the sector, only transfer the costs to the deposits and accounts of the companies and the banking of large wealth, generally from 500,000 euros.

Sam Brad

The Great Writer and The Passionate Poet As Well, He Graduated from University Of Florida in Journalism and Brad have around 12 years of experience in news and media section.

Leave a Reply

Your email address will not be published. Required fields are marked *