The CNMC opens proceedings against the six major banks for the mortgage war

BarcelonaThe National Commission on Markets and Competition (CNMC) has decided to open disciplinary proceedings against six large banks for possible anti-competitive practices. These are Bankinter, Banco Santander, BBVA, Unicaja, CaixaBank, and Banc Sabadell. The body chaired by Cani Fernández, whose term ends precisely this Tuesday, is investigating whether these entities engaged in a possible anti-competitive practice related to mortgage policy and, more specifically, to the so-called mortgage war, contrary to Article 1 of the Competition Defense Law and Article 101 of the Treaty on the Functioning of the European Union (S/0009/26).

This precept prohibits "all agreements, decisions or collective recommendations, or concerted or consciously parallel practices, which have as their object, produce or may produce the effect of preventing, restricting or distorting competition in all or part of the national market [...]". It also relates to the abuse of a dominant position in the market.

The supervisory body is investigating the statements made by some of the executives of these entities, of "public statements about the bank's future commercial policy related, in particular, to fixed-rate mortgage interest rates", it explains in a statement. These statements, adds the CNMC, "would have allowed entities in the sector to anticipate the future behavior of their competitors".

During the results presentation period, the main executives of these banks stated that mortgages were being granted at excessively low interest rates and even assured that they would reduce the pace of mortgage lending. These messages, as inferred from the communication of the supervisory body, would have conditioned the evolution of the rest of the market in terms of granting loans for the acquisition of housing.

The supervisory body understands that this type of public statement, in which the main banks in the Spanish market are involved, "would have allowed entities in the sector to anticipate the future behavior of their competitors". The initiation of these proceedings does not prejudge the final outcome of the investigation. A maximum period of 24 months is now open for instruction and resolution.

The CNMC's decision has surprised the sector, as some executives "answered journalists' questions at the results presentations," according to some sources. They also recall that mortgages in the Spanish market are among the cheapest in Europe, and that "they are public data" from the European Central Bank (ECB). According to these figures, only Malta (2.08%) and Bulgaria (2.48%) have cheaper loans for buying a home. In Spain they are at 2.80%, while the average in the euro area is 3.43%, according to April data. They also recall that mortgages "are not granted for profitability reasons but especially to achieve customer loyalty, because they are long-term loans".