Madrid regulators opened inquiries that may reshape mortgage pricing across Spain. The investigation centers on executives’ statements about future fixed mortgage rates.
In Madrid, the competition regulator announced the start of disciplinary proceedings against six banks in the country, including Santander (SAN.MC) and BBVA (BBVA.MC), over potential anticompetitive practices in the mortgage market.
CNMC is examining whether public statements by some bank executives referred to future policies regarding their fixed-rate mortgage rates.
“Such statements could allow players in the sector to anticipate the future behavior of their competitors.”
– CNMC
“When banks act almost identically, we pay more for loans and get less for our savings”
– Patricia Suarez
Caixabank (CABK.MC), Unicaja (UNI.MC), Bankinter (BKT.MC) and Sabadell (SABE.MC) are also involved in the investigation. All banks declined to comment.
The investigation takes place against the backdrop of intense competition among Spanish mortgage lenders. Some bank executives warned of “irrational” practices by banks aimed at attracting customers, given rates dipping below market levels.
Spanish mortgage loans are currently among the lowest in the euro area: the average rate was 2.81% as of April, compared with the euro-area average of 3.44% according to data from the European Central Bank.
Spanish banks also pay some of the lowest rates on lump-sum deposits – averaging 1.78%, below the euro area average of 1.87%, Italy 2.25% and the Netherlands 2.42%.
Alejandra Kindelan, head of the Spanish Banking Association, said on Tuesday that banks comply with the law and that Spain has the most competitive mortgage market in Europe.
The opening of the proceedings does not guarantee the final outcome. CNMC has set a 24-month deadline to issue a final decision.
Context and potential impact on consumers
This case highlights the tensions in Spain’s growing mortgage market and underscores transparency and the avoidance of anticompetitive practices by banks.
The regulator’s decision and any potential disciplinary actions could affect banks’ future policies and the overall dynamics of mortgage rates.