Spain is known not only for football clubs, but also for being hit hard by the 2008 financial crisis. A large number of real estate objects, especially in the resort area, which were pledged, became the property of banks. Many financial institutions, in order to save the situation, began to look for buyers for them among residents of other countries. And today, investing in real estate in the Basque Country is very profitable. But before you buy a house here, it is still recommended to study the list of banks in Spain and choose the best conditions.
Features of the Spanish banking system
The banking system of the country, like in other EU countries, is two-tier. The Central Bank of Spain (Banco de España) administers, controls and supervises the implementation of financial regulations.
At the second level of the banking system are:
- financial institutions (Entidad de crédito) - 205 banks;
- monetary funds (Fondo del mercado monetario) - 27 units;
- other financial institutions (Otra institución) - 46 pcs.
The large number of financial institutions indicates a high concentration of banks in the country and, therefore, serious competition between them.
In turn, all financial institutions are subdivided into:
- banks (Bancos);
- savings banks (Cajas);
- credit cooperatives (Cooperativas de crédito);
- official credit institutions (Instituto de crédito oficial).
The three leaders of the banking system in terms of assets, according to the data of the Central Bank of Spain for 2021, is as follows: Banco Santander is in first place by a large margin, followed by BBVA and Banco Sabadelli. A characteristic feature of Spanish banks is the placement of information on all their sites in two languages: Spanish (spain) and Catalan (catala).
Functions of the Central Bank of Spain
The Spanish Central Bank was founded back in 1782 and is one of the oldest in Europe. Its headquarters are located in Madrid, at st. Calle Alcala, 48.
Since the Spanish financial system is part of the European one, the Spanish Central Bank is subordinate to the European Central Bank.
The main bank of Spain is headed by a governor, who is appointed by the king at the suggestion of the country's government. He can hold this high position only for 6 years, then re-elections are held. The Governor performs the functions of the head of the bank, represents his interests in courts and international instances.
The Deputy Governor performs all the functions of the Governor in the event of his illness or absence. His term of office also does not exceed 6 years.
The Executive Committee (La Comisión Ejecutiva) of the Central Bank is the main executive body and consists of:
- a governor who acts as its president;
- deputy governor;
- two advisors.
Also, the Central Bank has a Board of Governors, which consists of:
- the governor;
- his deputy;
- six advisers;
- the Secretary General of the Treasury;
- Vice President of the National Securities Commission.
Advisers to the Central Bank are appointed by the government of the country on the recommendation of the Minister of Economy. The two advisers who serve on the Executive Committee are elected by the Board of Governors.
The functions of the main bank of Spain are the same as those of the central banks of other countries:
- supporting the stability of the banking system of the country and the EU;
- supervision of all participants in the country's financial system;
- preparation and publication of statistics on the financial situation in the country;
- control of banks' compliance with economic standards.
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List of large and reliable banks in Spain
In the financial sector of Spain there are many banks, both national and with foreign capital. Both the former and the latter provide a full range of banking services.
The largest and most reliable banks in Spain (according to the country's Central Bank), as well as the most popular among Russians, are Sabadell, La Caixa, BBVA, Santander.
Bank Sabadell
Sabadell bank - one of the oldest banks in Spain - was established on December 31, 1881. Its headquarters are located in Alicante.
The bank is part of the financial group of the same name, which is in the 5th position in terms of assets (in the country).
Sabadell bank has a wide network of branches and subdivisions both in Spain itself (2,204 points) and in Italy, Mexico, Portugal, USA, Algeria and other countries (669 points). The official website of the bank is https://www.bancsabadell.com.
"Sabadell Bank" specializes in serving small and medium-sized businesses, as well as large corporations that are engaged in international trade. Its services are used by 12.1 million clients.
The bank is proud to be the first in terms of the quality of services for small and medium-sized businesses and corporations, and the second in the retail segment.
In this bank, you can open an account, issue a payment card, put money on a deposit, use various insurance products, take a loan for a car, study.
La Caixa Bank
Spanish bank La Caixa is one of the youngest banks in the country, but at the same time the most ambitious. It was created on July 1, 2021 in Barcelona.
The bank at one time absorbed several financial institutions: Banca Civica, Banco de Valencia, Barclays España.
Bank "Kaisha" (this is how the name is pronounced in Spanish) ranks third in terms of assets in Spain and serves about 13 million customers. It positions itself as an innovative financial institution, pays a lot of attention to the development of remote banking services, such as Internet banking or mobile banking.
La Caixa is also known for owning the largest charitable foundation in Spain and the third largest in the world. The official website of the bank is https://www.caixabank.es.
Given the tensions over the possible independence of Catalonia, La Caixa's headquarters moved to the city of Valencia in October 2021.
The bank provides a full range of services, including loans for the purchase of real estate, payment cards, insurance, account opening and, of course, HolaBank Internet banking.
BBVA Bank
BBVA Bank (abbreviation for Banco Bilbao Vizcaya Argentaria) is part of one of the largest banking groups in the world, ranks first in terms of assets in Mexico, second in Spain, Turkey and Peru. The number of its branches is over 8.2 thousand, and the number of clients of the financial group is about 72 million.
The bank itself was created in 1857 in Bilbao, where its headquarters are now located. The official website of the financial institution is https://www.bbva.es.
BBVA serves both large international companies and small, medium and retail businesses. Here you can open an account, make a transfer, get a consumer loan or get a mortgage.
In other words, a financial institution is versatile and provides a full range of banking services.
Spanish bank Santander
Santander bank is the largest bank in Spain. It was created in 1857 in Santander, where today its headquarters are located.
Banco Santander is a member of the international financial group of the same name, which has branches all over the world. The number of its offices has exceeded 13.5 thousand, and they serve more than 133 million clients.
The official website of the bank is https://www.bancosantander.es.
Consumer Santander Bank specializes in the retail segment, but also serves large international companies and small and medium-sized businesses. Provides a full range of banking services: you can open an account or get a plastic card, place savings or make investments, conclude a mortgage agreement, take a consumer loan, etc.
Other banks in Spain
In addition to those listed, the most famous financial institutions in Spain are Bank Inter, BNP Paribas España, Citibank España, Credit Agricole.They are also versatile and provide a full range of banking services.
- Bank Inter is popular among the population due to the rather high, as for the European market, rates on savings deposits: 5% per year, then 2%. This contribution was valid in 2021 and only for new clients. At one time, the bank was also considered one of the best in Spain (2021).
- La Banca March specializes in financial investment and family wealth management.
- ING Bank is known for good online banking as well as low account opening fees.
- Evo Banco is popular with expats who have already received a residence permit or resident card. The bank is known for its modest fees for foreign transfers and the absence of fees for currency conversion when withdrawing money from ATMs in another country.
BMN Bank
BMN Bank came into being in 2021 through the merger of Caja Murcia, Caixa Penedès, Caja Granada and Sa Nostra. It existed until January 2021, when Bankia was acquired.
He specialized in the implementation of savings transactions among the population and worked only in Spain.
Popular Bank
Bank Popular or Popular, like the previous financial institution, has already disappeared from the Spanish banking market.
The bank began its activity in 1926. As of the end of 2021, Banco Popular Español's assets reached 113.137 million euros, and the number of clients - 4.6 million.
In 2021, the bank faced a sharp drop in liquidity, the value of its shares on the stock exchange fell by 50%.
To save the bank, from which depositors began to take money en masse, the government found an investor for him: Banco Popular Español was acquired for a symbolic 1 euro by Santander bank. On April 24, 2021, the parties officially announced the merger of assets.
Do Russian banks work in Spain
Unfortunately, there are no Russian banks in Spain. But there are subdivisions of international financial groups in the country, which are also in Russia: for example, Citibank, Credit Agricole and others.
Therefore, when planning a trip to Spain, it is recommended to visit a branch of an international bank in Russia in order to issue its payment card for settlements or cash withdrawals.
In Spain itself, you should look for ATMs with the corresponding names. Using the card and ATM of the same bank will allow you to save at least a little on fees.
How to open a Spanish bank account
To open an account with a Spanish bank, a non-resident will need to provide:
- foreign citizen card NIE ((Número de Identidad de Extranjero - identification number of a foreigner);
- international passport;
- income statement;
- certificate from the place of work.
In addition, banks may require a letter of recommendation from a Russian bank, a police clearance certificate, as well as other documents confirming the purpose of opening an account (a preliminary contract for the purchase of real estate, a business plan for opening an enterprise, etc.).
All documents must be translated into Spanish. This can be done at the Spanish consulate or with an official translator and interpreter in Spain.
By the way, despite the high demand from Russians for Spanish real estate, nowhere can Spanish banks be able to find an official website in Russian to figure out on their own what is needed to open an account and apply for a mortgage.
Find out what documents are required to open a bank account in Spain.
How to get a mortgage in Spain
In order to apply for a mortgage, a non-resident needs to obtain a NIE. Only with this number is it allowed to carry out various official transactions on the territory of Spain.
To get a NIE number, a non-resident will need:
- copies of all pages of the passport;
- real estate purchase and sale agreement;
- a copy of the receipt for the payment of the initial payment;
- 3 color photographs 3 × 4 cm;
- Nota Simple (an official extract from the Spanish Property Register, which contains all information about real estate) - issued by the seller.
Then you need to open an account and order an appraisal procedure for the property you plan to purchase. The latter will take about 5-10 business days.
Then you need to transfer all documents on real estate and about yourself to a potential lender. The list includes:
- certificate of income for the last year and for the past period of the current year;
- an extract from the servicing bank for the last 12 months;
- certificate from the place of work indicating the position held;
- an extract from the Bureau of Credit Histories;
- international passport;
- NIE number.
Find out what you need for registration and how a mortgage is issued in Spain.
Conclusion
The Spanish banking system is two-tier and highly competitive. Control over it is exercised by the Central Bank of Spain.
It should be noted that there are a lot of banks with foreign capital in the country, but there is not a single representative of the Russian Federation: the same Sberbank is absent in Spain.
Spanish banks provide a full range of financial services to both residents and non-residents. The latter can not only open accounts, but also arrange a mortgage, and on terms that are much more profitable than Russian ones: in Spain, loan rates rarely exceed 3% per annum.
