The financial system of Spain is one of the oldest in the world. The beginning of its occurrence is 1782, when the Central Bank of Spain was established under King Carlos III. Since then, this sector in the country has repeatedly changed: the types and functions of institutions have changed, new financial institutions have appeared to replace the old ones. The crisis of 2008-2015 seriously affected the financial system of Spain: there were high-profile bankruptcies, mergers and reorganizations of banking structures that affected the fate of the money of millions of people.
Today this sector is considered one of the most reliable and sustainable, and the largest financial and credit groups of this state offer their services far beyond the borders of the country. From this article you can find out which banks in Spain offer a loyal and comfortable service for their customers at low cost.
Spain system
Participants in the banking market in Spain are commercial banks (Banco), savings banks (Cajas de Ahorro) and foreign branches operating in the country. The functions of the supervisory authority are performed by the Central Bank of Spain (Banco de España). In total, 56 commercial institutions, 87 foreign organizations and 3 savings banks operate in the Kingdom. The five largest Spanish banks in terms of assets include Santander, BBVA, Caixabank, Sabadell and Bankia.
Savings Banks in Spain
Savings banks are lending institutions that provide a wide range of services: from opening and servicing private accounts to providing mortgage loans and financing social projects. Unlike other banks in Spain, savings banks do not have shareholders or other owners. By type they are characterized as semi-public, and their legal status is equated to private foundations. It is typical for savings banks that the board of directors includes representatives of local political parties, business associations, as well as their own customers, elected on average once every four years. According to Spanish law, part of the income of savings banks goes to educational and cultural events.
At the moment, savings banks as a separate type of financial institutions are gradually becoming a thing of the past, giving way to banking associations.
Service for foreigners
Terms of banking services vary depending on the status of the client. In the absence of a residence permit, the available number of transactions in Spanish banks is narrowed along with an increase in service charges. The number of banks in Spain that are loyal to non-residents is extremely small. An exception may be the intention to acquire real estate or become the founder of a new company in Spain - in this case, local credit institutions will require a simplified package of documents.
Resident status facilitates interaction: fewer required documents, no tax for non-residents, quick service. The presence of a residence permit in Spain will also serve as a significant advantage in the decision of the bank to issue a debit or credit card.
Criteria for compiling a rating of banks in Spain
The list includes Spanish banks that provide the most loyal service, including for foreign customers. This includes the amount of maintenance costs, the convenience and functionality of Internet banking, the branching network of branches and ATMs. The reliability and stability of financial and credit organizations were also taken into account.
Santander
Recognized as the largest bank in the country, ranking first in the ranking, with a total assets of 492.41 billion euros for 2017. It was founded in 1857 in the city of Santander. Since 2000, the financial and credit group has been expanding continuously through the acquisition of new assets. Santander branches operate far beyond the borders of the Kingdom - in the countries of Asia, Europe, South and North America. In 2016, the bank was placed on the 36th line of the Forbes rating of the largest public companies in the world. Net income of the banking group in 2018 amounted to 7.81 billion euros.
Compared to other Spanish banks, Santander compares favorably with low operational maintenance costs and the ability to cash out funds from ATMs of other credit institutions. To become a client of this institution, you must have at least a temporary residence permit. Santander deposits have been repeatedly recognized as one of the most profitable deposits in banks in Spain - the yield on them can be up to 3%.
BBVA
Banco Bilbao Vizcaya Argentaria (BBVA), like the rest of the participants in the list, is an international credit and financial group. A credit institution was established in 1857. Today, the bank provides its services to 72 million customers in 30 countries. It is the second largest bank in Spain. He leads the list of financial institutions in terms of assets in Mexico, leads the market for banking services in South America, Turkey and several regions of the United States.
The total assets of BBVA are 400.08 billion euros, the amount of earned income in 2017 is 2 082.72 million euros.
BBVA's activities include retail, corporate, investment and private banking services.
The main advantages of this bank are a convenient and informative website with the correct display in English, the absence of a fee for maintaining accounts and the provision of a free VISA card to cash out your own funds. Opening an account with BBVA Bank of Spain without visiting a branch is also not difficult - you will need to fill out an online form and send documents by post or courier.
INGBank
It is part of the ING Group, which specializes in banking and insurance services. The institution itself is in third place in the ranking, is universal and offers its services to individuals, small businesses, corporations, governments and financial institutions. In Benelux countries, ING Bank is a leader in areas such as retail and commercial banking. The assets of ING Bank are estimated at 36,694.35 million euros.
The financial and credit organization provides multifunctional Internet banking, which allows you to remotely open accounts and work with them. There are three types of client accounts at ING Bank: for accumulating funds, transferring income and servicing entrepreneurial activities of residents of the country. The disadvantage is the lack of English in online service.
EvoBanco
The company positions itself as a bank, providing simple, transparent and innovative services. Evo Banco, the fourth in the ranking, puts emphasis on easy, convenient online banking and a huge developed network of its branches. The bank specializes mainly in retail products and services. The volume of assets of Evo Banco is estimated at 5,005.56 million euros.
The institution willingly cooperates with foreigners who have received a residence permit in Spain or a resident card. Customers under the age of 28 can open an account with Evo Banco without commission. Also, the bank does not charge a fee for making transfers outside the country and currency conversion when withdrawing from cards at foreign ATMs no more than four times a month. The inconvenience for a foreign client may be the Spanish-language interface of the Evo Banco website.
Sabadell Bank
Banco de Sabadell is the fifth largest financial group in Spain. It consists of several banks, subsidiaries and associated structures. The institution serves individuals, small and medium enterprises and companies operating in the field of international trade.
The company was founded in 1881 by a group of 127 trading entrepreneurs in order to support local industry. The headquarters is located in the city of Alicante. The banking conglomerate has a network of 2,767 branches within the country and 669 branches outside it. Sabadell has a total customer base of approximately 11.9 million.
Net income of Banco de Sabadell for 2018 amounted to 783.3 million euros, which is 9.6% more than the previous result. The total value of the bank’s assets is estimated at 222 322.4 million euros.
Opening a current account and withdrawing money from Sabadell is quite simple. For non-residents, technical support for customers in 24/7 format with the possibility of service in English will be a big advantage. The only obstacle for foreigners may be opening a deposit at Banco de Sabadell, for which the bank sets higher requirements.
Finally
The article examined the 5 best banks in Spain, ready to offer convenient and affordable financial services. These include Banco de Sabadell, Banco Santander, Banco Bilbao Vizcaya Argentaria, ING Bank and Evo Banco. These financial institutions offer low costs for opening and maintaining accounts, low-cost transactions and functional Internet banking. A simplified package of documents and convenient remote service are provided here for foreign customers.