The default rate of Spanish banks fell to 2.84% in October, compared to 2.87% in September, and marked its lowest rate in 17 years, since September 2008, in the middle of the bricks bubble, thanks to the increase in the credit balance and the reduction in unpaid loans, according to data published this Friday by the Bank of Spain and collected by the EFE agency.
Non-performing loans decreased by 174 million, to 34,523 million euros; while the credit portfolio expanded to 1,215 billion, compared to 1,210 billion at the end of September.
Compared to October 2024, payment defaults increased from 3.41% then to 2.84% today, thanks to the fact that the balance of bad debts was reduced by 5.643 million.
In addition to overall sector data, the Bank of Spain publishes each month the aggregated unpaid debts of banks, savings banks and cooperatives (rural savings banks), on the one hand; and, on the other hand, that of consumer credit companies.
The default rate of banks, savings banks and cooperatives fell from 2.78% in September to 2.75% in October, also the lowest rate in 17 years, thanks to the fact that unpaid loans decreased by 217 million in a single month, to 31.990 million.
In the case of consumer credit companies, the default rate increased in October compared to September, from 5.31 to 5.49%, after unpaid loans increased by 1.43%, up to 2.344 million.
Compared to a year earlier, consumer credit companies saw unpaid loans granted increase from 6.68% in October 2024 to 5.49% during the same month of 2025.
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