01.02.2023  Changes in saving in Spain since the pandemic* 4th Observatory on Saving and Investment in Spain / Bestinver-IESE Madrid Margarita Delgado Deputy Governor *lEnglish translation from the original in Spanish  Good morning. Allow me to begin by pointing out that we are currently observing the “quiet period” that precedes the monetary policy meetings of the ECB Governing Council. This means that I cannot refer to issues that could influence expectations about future monetary policy decisions. Therefore, my thoughts should not be interpreted as insight into the monetary or economic outlook that might shape expectations regarding these decisions. And now let me thank Bestinver and the IESE for inviting me to take part in this closing session of the 4th Observatory on Saving and Investment in Spain. I should like to begin by describing the developments in Spanish household savings in recent years. I will go on to discuss how those savings have been channelled towards the different types of financial and non-financial assets. And I will end by discussing the importance of strengthening financial education, noting the Banco de España’s recent initiatives in that direction in collaboration with other public institutions. As we all know, Spanish households built up a very sizeable stockpile of savings during the most critical stages of the pandemic. Specifically, in 2020 the saving rate of Spanish households stood close to 18% of their gross disposable income. That is far higher than the average level for the five preceding years.
and in terms of residential investment, which is slowing somewhat due to a tightening of financial conditions. As I have said, the extraordinary savings accumulated during the pandemic were concentrated among higher-income households, whose portfolios are also more diversified. According to the 2020 Spanish Survey of Household Finances, real assets1 accounted for 88% of the total assets held by households below the 20th percentile of the distribution (with their principal residence accounting for 66% of the total). However, for households in the 90th income percentile, real assets represented 73% of all assets and the principal residence just 34%. Similarly, a very small percentage of low-income households have listed shares or investment funds in their portfolios (less than 3%, compared with 33% and 22%, respectively, of households in the top decile of the distribution). One factor that influences households’ investment decisions is familiarity with financial products. Indeed, as the Bestinver-IESE/CIF observatory has shown, even in a study targeted at people more likely to be acquainted with financial investments, familiarity with savings vehicles and financial decisions vary across income, age and gender groups. These findings are consistent with those of the Banco de España’s latest Survey of Financial Competences. This survey, based on a representative sample of the Spanish population aged between 18 and 79, shows broad differences in the level of familiarity with the most common financial products.