Economy.- The criteria for granting loans will continue to relax in the third quarter, according to the Bank of Spain

Spanish banking expects the demand for credit to increase in a generalized manner between July and September



The approval criteria for bank loans and the general conditions applied to the loans relaxed slightly during the second quarter of the year, both in Spain and in the Economic and Monetary Union (EMU), according to the results of the ‘Banking Loans Survey’ July 2018 prepared by the Bank of Spain, which foresees that conditions for the concession will continue to soften in the next three months.

Specifically, the general conditions applied to the cash loans were relaxed with greater intensity in Spain, especially in the case of financing families for consumption and other purposes and in the case of loans to companies.

In addition, the demand for credit from households grew in both areas between April and June, with the increase being significantly more intense in Spain in the case of funds destined for consumption and other purposes other than the acquisition of housing, while the applications for Corporate credit only increased in the eurozone, remaining stable in Spain.

Regarding the financing of the entities, both the Spanish and the euro area countries saw, in general, a slight improvement in the conditions of access to almost all retail markets – except in the case of long-term deposits of the EMU, where they worsened slightly–, as well as stability or a certain deterioration in the wholesale markets, according to the Bank of Spain survey.

The factors that led to the relaxation of the conditions were the improvement of the liquidity situation of the entities, the lower perception of risks and the greater tolerance to these, effects that were partially offset by higher costs related to the level of capital.

The entities of both areas highlighted that the most relevant factors in the last six months when setting the margins were the search for profitability and the pressure of competition.

Throughout the first half of the year, regulatory and supervisory measures favored an increase in the capital levels of Spanish entities and the euro area. As for the level of assets, they did not have a national impact, although they led to a slight increase in the total assets and risk weights of the EMU entities.

On the other hand, these actions did not have a significant impact in Spain on the criteria for granting and on the margins of the loans in any of the segments, nor did they influence the financing conditions of the entities.

However, in the euro area, they did favor a certain relaxation of the financing conditions of the intermediaries and a slight tightening of the concession criteria, without significantly affecting the margins applied, except in the segment of loans to households for home purchases.


On the other hand, the Spanish entities pointed out that delinquency hardly affected the criteria for granting loans and the conditions applied in the first half of the year, despite having caused a slight tightening in the criteria and conditions applied to the loans. in some segments between 2014 and 2017, due to higher capital costs and balance sheet reorganization operations, as well as an increase in regulatory requirements.

On the other hand, the euro area entities perceived a slightly higher influence of the delinquency ratio on credit policy. Thus, both between 2014 and 2017 and, to a lesser extent, in the first half of 2018, the doubtful levelled to a certain tightening of the criteria and the conditions applied in all segments as a result of the impact of late payment on the perception of risks and the tolerance to these by the entities, as well as the costs associated with balance sheet reorganization operations.



Looking ahead to the third quarter of the year, the Spanish entities surveyed by the Bank of Spain foresee that the credit granting criteria will continue to relax slightly in all the modalities and that the demand for credit will increase between July and September in a generalized manner.

In the retail and wholesale financing markets, the entities’ outlook for the third quarter of 2018 points to a slight improvement in access conditions in the fixed income securities markets, in the securitization markets and in the capacity to transfer risk out of balance, and stability in the rest of the markets.

As a result of the regulatory and supervisory measures, the entities surveyed expect, for the second half of 2018, a slight decrease both in the total size of the balance sheet and in the risk-weighted assets, as well as an increase in the level of capital, due to both new capital issues as well as the growth of undistributed profits.

The entities do not believe that these actions lead to changes in the approval criteria, but do foresee a rebound in the margins applied to loans in all segments. Regarding the impact on their financing conditions, they anticipate a slight improvement.

Lastly, the entities do not estimate that the doubtful ratio will have a significant impact on their credit policy or on the criteria and conditions applied to the loans granted in any of the segments analyzed.

The FROB will be able to anticipate aid to the bank before European support arrives

  • The FROB may anticipate money to entities subject to liquidity pressures, through loans or debt securities.
  • The advances will be charged to the first tranche of financial aid of 30,000 million euros.
  • According De De Guindos is to have “an instrument that allows, exceptionally and urgently, give the necessary liquidity in a space of time reduced.”
  • Keys to the banking rescue of Spain.
Banco Central Europeo

View of the sculpture of the euro, in front of the headquarters of the European Central Bank (ECB), in Frankfurt. Frank Rumpenhorst / EFE

The Congress has validated on Thursday a royal decree law in which the FROB is authorized to anticipate , in the form of an effective loan or in debt securities, aid to entities submitted, in the judgment of the Bank of Spain, to liquidity pressures that may affect them. until the disbursement of European support.

The measure is included as an additional provision in the Royal Decree Law on Liquidity Measures of Public Administrations and in the Financial Field, which has had 182 votes in favor; 103 against and 27 abstentions.

In addition, the royal decree includes another additional provision that modifies the regulation of the granting of bond guarantees and obligations of credit institutions.


European funds will be available at the beginning of the month

During the defense of the royal decree law of liquidity measures of public administrations and in the financial field, the Minister of Economy, Luis de Guindos, explained that the text contained two different parts.

One that refers to the autonomous communities and another on “essential measures to allow the start of the European assistance process for the recapitalization of Spanish entities.”

According to de Guindos, in the fifth additional provision, the Fund for Orderly Bank Restructuring (FROB) is authorized to sign the necessary contracts “in which the financial assistance for the recapitalization of the entities is crystallized”.

In addition, it has indicated that the FROB will be able to anticipate in the form of an effective loan or in debt securities, the amount of the financial support that the entities participating in the recapitalization process are requesting, when these are submitted, in the opinion of the Bank of Spain. , to liquidity pressures that may affect them until the effective subscription and disbursement of the committed support .

Awaiting the aid

These advances, he said, will be made under the first tranche of financial assistance contemplated in the memorandum of understanding of European aid to banks, of 30,000 million euros .

“We estimate that these European funds will be available by the end of the month in order to strengthen the credibility of the assistance,” said De Guindos, who insisted that this will be understood as an advance payment of the recapitalization that is subsequently carried out. .

In addition, according to the regulation, the Deposit Guarantee Fund is authorized to commit its assets for the provision of guarantees that may be required from Spain within the framework of European financial assistance, although “such commitment and guarantees may be assumed as be established in the recapitalization plans of the entities “.

The first tranche of aid is guaranteed with 231 million euros According to the minister, this will make it possible to face the agreement reached between Spain and Finland, on the guarantees that the country requires to Madrid to participate in the aid to the financial sector.

Thus, the first tranche of aid of 30,000 million will be guaranteed with 231 million euros .

Also, the text includes a modification of the General State Budget Law that allows accelerating the granting of guarantees to those entities that request it, be solvent and present collateral liquidity needs.

The total amount of this guarantee is not modified, according to the minister, which is maintained at up to 55,000 million euros.

The objective is to have “an instrument that allows exceptionally and urgently , give the necessary liquidity in a very short space of time to entities that require it,” said the minister

Magazine Parental benefits calculator

Magazine Parental benefits calculator

You would like to apply for parental allowance soon and know how much money you receive from the state? With the parental allowance calculator from you get a quick and easy overview of parental benefits. Here you will find out in a few seconds how high your entitlement to parental benefit will be.

How does the parental money calculator work?

The parental allowance calculator shows you how high your potential claim to parental allowance can be after the birth of your child. This is done in three short steps:

  1. First, indicate what your net income is. The parents responsible for the parental allowance take into account your average earnings during the last twelve months before the calendar month of birth.
  2. Then, in the Parental Allowance Calculator, you indicate how many children you expect to have at birth . For multiple births, for example, if you get twins or triplets, you will receive a multiple surcharge of 300 euros per month for each additional child.
  3. Last, enter whether you have other children . When calculating the parental allowance, a so-called sibling bonus is added for families who already have one older child under the age of three or at least two older children under the age of six.

When you have all three details, the parental allowance calculator shows you immediately how much parental allowance you can expect after birth. Please note that the calculator can only give you an approximate guideline. Of course, you must also check in advance whether you are even eligible for parental leave.

Insurance for the family: Additional protection for the child

Parents want to know their child well secured in every way. This includes the right insurance coverage. According to experts, three insurance policies are particularly important for families: liability insurance, occupational disability insurance and term life insurance. Here’s how you can best secure yourself and your family.

Parental Allowance and Parental Benefit Plus at a Glance

The parental allowance has existed in Germany since 1 January 2007. It was introduced with the Federal Parental Allowance and Parental Leave Act (BEEG) and is intended for all parents who look after their children during their first months of life and resign from their jobs. Because they earn nothing or at least less during this time, they receive the parental allowance from the state as a financial compensation . In principle, this will replace the missing net income of the parents caring for their child in the initial months after birth. The level of financial support from the state depends mainly on past incomes. The wage replacement is at least 300 euros and a maximum of 1,800 euros per month .

With effect from January 1, 2015, there are also additional regulations with the Elterngeld Plus, the more flexible parental leave and a new partnership bonus, which enable a better compatibility of family and work. They apply to children born after 1 July 2015.

What has changed with the new regulations for parents?


The parental allowance supports young families

For parents whose children were born after 1 July 2015, there are better ways to make parental leave more flexible. The new parental allowance benefits differ from the previous parental allowance – also referred to as basic parental benefit – mainly in the fact that the time of parental benefit payment doubles and the benefits are halved . For each parental allowance month, a parental allowance Plus month is attached. If both parents decide to work part-time for at least four months after the birth, they can use the partnership bonus. This means four additional parental benefit plus months.

Due to the new rules, parents now have to calculate exactly which variant financially pays off for them . For parents who, for example, know that they want to get back into the job quickly after the birth through a part-time job, it usually pays off to combine the old and the new benefit, or completely the relationship of the Elterngeld Plus. This is because the income of part-time work is taken into account when calculating the replacement benefit.

Example: If a mother earns 1,500 euros net per month before the birth, she is entitled to a monthly parental allowance of 975 euros . However, if it earns 800 euros, the income to be considered minimizes to 700 euros. The parental allowance will be adjusted accordingly to 455 euros. For a period of twelve months, a total of € 5,460 will be paid in this way.

With the Elterngeld Plus, however, crediting the income is less important, as long as the reduced parental allowance is less than half of the basic salary without additional earnings (in the example, this corresponds to EUR 487.50). In the case of an example, the mother could receive the Elterngeld Plus in the amount of 455 euros up to 24 months, which means a total of around 11,000 euros.

However, if she decides to stay at home completely, she could receive 975 Euros parental allowance for 12 months (11,700 Euros in total) or 487,50 Euros Elterngeld Plus for 24 months.

Who is entitled to state benefits?

Claim for parental allowance according to § 1 BEEG parents or parents who:

  • Have their residence or habitual residence in Germany
  • Living with your child in a household
  • Caring for and educating the child
  • No or no full employment

Parents entitled to parental allowance are not only parents who were gainfully employed before birth – for example, as employees, civil servants or self-employed persons. Unemployed persons, students, schoolchildren or housewives who did not have an earned income before birth can also receive parental allowance from the state if they predominantly look after their own child during the first months of their life.

Parental Allowance and Unemployment Benefit II

Since 2011, parental allowance, such as child benefit, has been taken into account as a basic income for job seekers, the so-called Hartz IV benefit, as an income that reduces performance. This regulation is lawful and constitutionally not objectionable, as for example the Landessozialgericht Rheinland-Pfalz has decided. More can read here parents.

How is the parental benefit calculated?

The amount of the parental allowance depends to a large extent on the earned income that the caring parent loses after the birth. Anyone who has achieved an average monthly net income of € 1,240 or more during the pre-birth calendar year and does not receive this income during parental leave will receive the equivalent of 65 percent . Parents or parents who earned between € 1,000 and € 1,200 will be replaced by 67 percent . For low-income earners with an average monthly net below € 1,000, compensation can even rise to 100 percent, depending on the relevant income.

Parents who reduce their hours of work by birth and do not exceed 30 hours per week in a part-time employment relationship are entitled to a part-time parental allowance. This can then replace up to 67 percent of income lost. However, the calculation takes into account a maximum of € 2,700 as income before birth.

The number of newborns and the number and age of older siblings have an additional influence on the amount of family benefits . For multiple births, the parental allowance increases by a flat rate of € 300 for the second and each additional child. Families who already have an older child under the age of three or two older children under the age of six also receive a sibling bonus. In this case, a surcharge of 10 percent of the otherwise due parental allowance, at least 75 euros per month.

How long is the parental allowance paid to parents?

Elterngeldrechner - Basiselterngeld More time for the family with parental allowance

Parents can receive financial support in the form of the basic parent’s benefit from the day of their birth until their child’s 14th month of age . A parent can apply for parental allowance for at least two and a maximum of twelve months. If the second parent goes on parental leave for at least two months and during this time reduces their income, the parental allowance can be extended by two partner months. Parents can use the parental benefit months either one after the other, alternately or simultaneously. With Elterngeld Plus parental leave extends to 24 months or 28 months if the partnership bonus is used.

Single parents with sole custody or sole right of residence, who receive the parental allowance as compensation for lost earnings, can claim the two partner months and thus receive parental allowance for 14 months. This is possible if the applicant worked before the birth of the child. Even with the Elterngeld Plus the same rules apply for single parents as for parents. The partnership bonus can be used not only single parents with sole custody, but also mothers and fathers who share custody.

No claim to parental allowance

The state’s family benefit exists for both natural and adoptive parents. However: Who in the calendar year before the birth as a lone parent a taxable income of more than 250,000 euros or as a married couple of more than 500,000 euros scored, for which eludes the claim.

When and how can parents apply for parental benefit?

Parental allowance can always be applied for after the birth of a child. Since it is paid up to three months retroactively , there is no hurry for newly-baked parents. The application must be submitted to the competent parental benefits office. Which body is responsible for the execution of the federal parental leave and parental leave law differs from state to state . The Federal Ministry for Family Affairs, Senior Citizens, Women and Youth provides an overview.

Effects on health insurance for parents

The receipt of parental allowance does not affect the amount of the health insurance contribution for the statutory health insurance. Those who work part-time pay as usual for their contribution to the statutory health insurance without consideration of the parental allowance. Parents who turn completely to the offspring and do not go to work are insured without any contribution, provided that they were compulsorily insured before receiving the benefit. Nothing changes for family-insured persons .

For private insured and voluntary statutory health insurance such as self-employed, however, another rule applies. You must continue to pay contributions for health insurance . While the amount of the premiums for parents with a private health insurance depends on the contract, the amount of income is crucial for voluntarily insured persons. If there is no income in addition to the parental allowance, the health insurance contribution is based on the stipulated fictitious minimum income. This value is adjusted annually.

Parental Allowance Calculator: Changed income determination since 2013

In order to simplify the very complex income calculation of claimants and to relieve the parental benefit institutions, some changes were introduced in parental allowance in 2013. The Parents Benefit Simplification Act identifies the “adjusted” net income of claimants with children born after 31 December 2012. Since then, parental benefit agencies have been calculating their parents’ gross income and are deducting a lump sum for social security contributions, payroll tax and other taxes .

Attention: The parental allowance calculator offers you a first rough overview of your financial claims. If you want to calculate your parental allowance in more detail, for example, the Federal Ministry of Family Affairs offers you the opportunity to calculate the amount of your claims in great detail.


Policy loan is possible alternative to the loan

Berlin – If you need money, you do not always have to take out a loan, but you can also avail yourself of a so-called policy loan, in which the life or annuity insurance is loaned. The biggest plus of these policy loans: they offer significantly lower interest rates than comparable installment loans. For direct sellers, the terms are sometimes well below 5 percent. Other providers settle at the 5 percent mark. The advantage of the conditions is mainly due to the fact that the repayment claim against the insurance as a security is good – the default risk at the bank drops. Even a SCHUFA message does not occur because you are lending your own money, so to speak.


Picture: Money 

However, the terms are also not so favorable that the policy loan is a long-term solution – because the interest on the loan are always above those who receive savers for their savings. In the long run, the policy loan is thus a loss. It is ideal for owners of capital policies who have short-term capital needs. If you need a $ 10,000 loan today that you can repay in six or twelve months, the policy loan is ideal because installment loans are usually the much more expensive option, and you can usually get the policy loan anytime, regardless of the duration can repay – at no extra cost.

Those who urgently need the accumulated capital insurance money and are considering terminating the insurance should definitely consider the policy loan as an option. Because a termination makes a minus business, especially in the first few savings years from almost every capital insurance, because the charges due at the beginning of the term, the savings are more heavily burdened than a few years later. In other words, a termination can melt the return tremendously. Here you can drive a much cheaper with a loan.

Of course, for a policy loan to be an alternative, the insurance companies must have a surrender value. This current value of the insurance is composed of the deposits, the generated profits and surpluses and represents at the same time the upper limit for the loan. Policy loans are usually bullet loans – during the term the borrowers pay only the accruing interest, repay the loan but not. The loan is then repaid from the sum insured: The insurer simply deducts the loan amount before paying out to the saver and pays out the remainder of the insurance benefit.

Also for tax purposes there is a lot to consider. In the past, policy loans were tax-neutral because the loan was repaid at the end of the life of the policy. However, since the beginning of 2009, the tax authorities in the policy loans see disguised insurance benefits and have changed the tax treatment.

In the case of insurance contracts concluded after 2005, an external comparison must be carried out in case of doubt. If a party not party to the insurance contract entered into a comparable loan agreement if he were to receive the policy as collateral, then it is unlikely that the loan would affect his tax liability. But if, for example, a particularly low interest rate is agreed or the sum insured is lowered by the loan, then it can be assumed that the granting of the loan is to be treated as if the insurance had been paid out – this would then raise taxes on the policy loan.

In the case of old contracts, a tax liability is assumed if the conditions for a tax exemption according to the old law are missing at the time of payment. Thus savers with policy loans usually have to pay taxes, if the insurance contract, for example, has a contract term of less than 12 years or a death protection of less than 60 percent of the contribution sum has been agreed.


Car Title Loans When You Really Need Them

Auto title loans can be described as great source of funds for unexpected emergencies. If they’re paid back on time, auto title loans are stress-free and convenient. There’s less paperwork and nail biting when it comes to applying to auto title loan. That will car title, income, and a noticeably permanent residence, you may possibly obtain cash within minutes of employing!

These loans are commonly use by people looking for cash hoping a short-term loan. If there was of is one thing title loans can be as low as 15-30 days and provided 2 years. Different lenders offer different lengths of mortgage loans.

Do worried within the financial crisis and the quest for a remedy to escape it? This can be the way to resolve your problem, which known as auto title loans. When using the title of the car, you can solve monetary crisis simply. Although many other loans are available, car title loan is probably the simplest ways to generate even with bad credit score rating. Many people are in danger without obtaining adequate guidance in clearing up the financial debts. Worldwide for most people, credit history is most important problem that prevents them from getting the loan.

One may assume that loan customers always upward having their vehicles taken back. However, this is not actually close to true. Based the Cato Institute, the repossession rate is 4 to 8 percent. This means that you may a 92 to 96 percent possibility of keeping automobile – strong odds compared with the probability of not paying your expenditures.

When you obtain acts title loan, you discover that there isn’t any credit checks. If you have bad credit or no credit, traditional lenders often won’t advance the funds just one or two. As long as you possess a clear title to your car, in the majority cases, automobile title lender will provide this money and in a short period of time.

How locate the Best Car Title Loans. 1st advice for you to do really homework. Fashion ask for referrals from friends, household members and colleagues, but you have to always double-check the information to certain that you coping a good lender. Avoid from shifty lenders mainly because they only in order to take advantage of people from a needy crisis. They will use quantity of tips on how to persuade you to sign the contract, including emphasizing their very own fast straightforward approval digest. They make you feel that you are lucky personal found a supplier that is willing to lend you money even in the event you have a foul credit background.

And last, but not least, may be the Auto Title Loans supplied by Instant Pink Slip Loans do not have a pre-payment fees. It means that you spend off the borrowed funds any time without any fines.