Why Spanish Pensioners Are Lining Up in the Freezing Cold to Buy Bonds
- Deposit rates in Spain are among lowest in the euro zone
- Big banks have been reluctant to pass on returns to borrowers
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Every recent weekday morning at dawn, a line has formed outside the 19th century granite headquarters of the Bank of Spain in downtown Madrid. Savers from across the city have come to get their hands on something unheard of for more than a decade: a return of nearly 3%.
Although interest rates have been rising in Europe since the middle of last year, Spanish lenders have so far opted not to pass on much of the increase to retail customers, choosing instead to pocket the difference.