The Euribor riseas a consequence of the tightening of the monetary policy of the European Central Bank (ECB), inflation and the search for other alternative and more profitable products is reducing family savings so far this year. According to data from the Bank of Spain, household money deposited in banking entities stood at 981.5 billion euros in August, which represents a drop of 22.8 billion euros since the year started.
In August, coinciding with the holiday period, the households withdrew 3.3 billion euros. So far in 2023, households have withdrawn money deposited in banking institutions month after month, except in June, when these funds increased by just over 10,000 million euros coinciding with the collection of the extra pay. However, this recovery was short-lived, since in July, the volume again registered a decrease of 5.5 billion euros.
In year-on-year terms, from August 2023 to August 2022, households have withdrawn 12.1 billion euros, an amount that is slightly lower than that registered in July, when the decrease was 12.6 billion euros. Family savings had reached a record level in December 2022, reaching over one trillion euros despite the fact that the rise in interest rates had already raised the Euribor.
Amortizations and inflation
The increase in the index to which most variable rate loans are referenced has been especially noticeable since 2023 began, facing the major review of their loans to purchase a home in the first months of the year, since the Euribor in 2022 still remained at low levels. This has caused many families to choose to partially repay their loans early to reduce the bill.
Added to this is the inflation, which remains uncontrolled and which reduces purchasing power, and forces households to use savings to sustain consumption. Finally, this reduction in savings is also influenced by the search for alternative investment products to deposits, whose returns still do not reflect all the increase in the rate increase, and opt for others such as Treasury Bills and monetary funds.
Companies also withdraw money from banks
Likewise, the Companies have also subtracted money from deposits. In the first eight months of the year they have taken out 15.2 billion. However, the volume increased in August by 1.2% compared to July, which represents a sum of 3.6 billion, up to 302.6 billion.
In year-on-year comparison, the dCompany deposits have fallen by 4.78%although in recent months they have evolved both upwards and downwards, due to the liquidity needs of the moment.