Spanish competition watchdog probes six largest banks over mortgage pricing signals

The investigation

Spain’s competition authority, the CNMC, announced on Tuesday the opening of a sanctioning file against the six largest Spanish banks, all members of the IBEX 35 index. The regulator is examining statements made by senior executives that may have constituted anticompetitive coordination in the fixed-rate mortgage market.

Such statements would have allowed the entities in the sector to anticipate the future behavior of their competitors.

The probe focuses on whether the banks’ public references to future commercial policy, in particular regarding fixed-rate mortgage interest rates, violated competition legislation. The CNMC stressed that the initiation of proceedings does not prejudge the final outcome and that a resolution may take up to 24 months.

A competitive mortgage market

For months, Spain’s mortgage market has seen intense price competition, a so-called “mortgage war” that pushed fixed-rate offers below the sovereign bond and interbank rates. Industry leaders openly complained that the resulting loan portfolios were unprofitable and could lead to future financial strain. The CNMC’s action arrives against this backdrop, signaling regulatory concern that the public airing of pricing discontent could have served as an alternative to formal collusion.

Banker remarks under scrutiny

While most major bankers expressed unease about the rate dynamics, positions diverged. Bankinter’s CEO Gloria Ortiz maintained a critical stance, and the bank reduced new mortgage signings by 40% in the first quarter. In contrast, Santander’s CEO Héctor Grisi chose to expand in the segment, and CaixaBank’s Gonzalo Gortázar expressed optimism. The CNMC is now examining whether even these varying signals, by revealing future intentions, indirectly coordinated market behavior in a concentrated sector.

Leadership transition at CNMC

The investigation comes during a leadership transition. Current CNMC president Cani Fernández is in her final week in office, and the government has yet to formally propose a successor to parliament. Sources cited by La Razón point to Mariano Bacigalupo, a former CNMC official now at the securities market watchdog CNMV, as the leading candidate. His potential appointment has drawn opposition criticism over perceived political ties through his spouse, former cabinet minister Teresa Ribera.

Next steps

The CNMC has up to two years to investigate and, if warranted, impose sanctions on the six banks, which account for a dominant share of Spain’s mortgage market. The proceeding will assess whether the statements, individually or collectively, amounted to a concerted practice under Article 1 of the Spanish Competition Law and Article 101 of the Treaty on the Functioning of the European Union. No interim measures have been announced.