May 8, 2019 / 8:42 AM / 2 months ago

Legal claims in Spain's banking sector could increase cost of credit

MADRID, May 8 (Reuters) - The high number of legal claims in the Spanish banking sector could harm clients and increase the cost of credit, the deputy governor of the Bank of Spain warned on Wednesday.

“Legal claims involve an increase in the workload and the costs associated, in addition to end up harming clients, given that the need to cover future judicial costs inevitably makes the credit more expensive,” Margarita Delgado said.

The warning from the deputy governor comes a day after the central bank said that Spanish lenders could see a rise in legal claims related to an historic method for pricing mortgages that could have a big impact on their profits.

Reporting by Jesús Aguado; Editing by Alison Williams

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