May
27
Spanish Banks Brace for Sub-Zero Rates Squeezing Mortgage Income
ByJust when Spanish banks thought the worst was over, lenders are responding to another attack on their revenue as mortgage reference rates edge toward zero.
Spain has one of Europe’s highest amounts of loans whose payments rise and fall with the Euribor benchmark, which has dropped for 12 successive months, to 0.16 percent. Banco Sabadell SA is including a clause in new loans to stop further decreases in interest payments should Euribor go negative. CaixaBank SA said its contracts already allow the bank to hold the benchmark at zero for payments on existing loans…
Spanish Banks Brace for Sub-Zero Rates Squeezing Mortgage Income
