This article assesses the cost of bank equity in Spain and the euro area since 2007, focusing particularly on the period of the COVID-19 pandemic. There was a marked rise in the cost of equity in March 2020, followed by a decline in the subsequent months. The article assesses the factors responsible for this movement, and compares it against the change in interest rates on alternative bank funding instruments.
Artículo de revista
Economic bulletin / Banco de España. Analytical articles Economic bulletin / Banco de España [Artículos], n. 4, 2020