Spanish savers continue to rely on deposits despite record low yields of these banking products.
According to figures published by the Bank of Spain, the number of deposits in financial institutions reached €749.9bn in May. This represents an increase of 1.6% over the same month a year ago.
The increase in deposits despite a low yield scenario on the back of the European Central Bank deposit rate cut, is linked with instability in assets classes and risk aversion, said the spokesman for the Spanish Banking Association (AEB), José Luis Martínez Campuzano, quoted by El Boletin.
Meanwhile, Spain’s asset management industry has been hit after UK’s decision to leave the EU.
Total assets under management (AUM) have decreased by 2.3% or €5.15bn to €217.35bn in June, which reverses the upward trend seen in the last three months.
The fall in June has been determined by the market’s first reactions after Brexit, which saw Spain’s benchmark stock market Ibex 35 suffering the worst fall in history, with a fall of 12.3%. Thus, 77% of June’s AUM decrease was driven by a depreciation of the funds’ assets, while 23% of the fall was linked to net outflows.