The issue is red hot. The Bank of Spain's initiative to put an end to the cash deposits war among major Spanish banks has been well-received by a healthy banking sector in the sense that they will be able to boost their profit margins thanks to lower yields on their deposits.
During the winter holiday, BOS governor María Linde asked the big banks to not raise rates any higher if they watned to avoid penalties. The BOS reccomendation is a clear interventionist measure, and even though it falls under the tasks assigned to the BOS by the ECB, is reprehinsible from the perspective of bank clients. The recommendation, certainly not printed in any publication, reproaches the banks that have done their jobs, because now their business strategies will be limited, and banks that received national bailouts will have an edge. Ultimately, taxpayers will get the short end of the stick once again.
Will the BOS decision make it easier for the banks to access credit markets, especially for private clients? We will have to wait and see. Because it's one thing to reduce the cost, but it's another to grant it.
