Publications

Digitalisation has become a key focus of the EU, as evidenced by the allocation of Next Generation EU funds to support the digital transformation of the EU economy. This is because of its potential to boost growth, and by extension, social welfare. However, the digitalisation of Europe’s economy will be dependent on investments in intangible assets, which in some cases are considered ‘expenses’ rather than investments according to national accounting systems. Examples of intangible assets include design, market research, specific human capital training and organisational capital. Unfortunately, Spain lags behind when it comes to investing in intangible assets, standing second to last in the EU and significantly behind the EU average. Importantly, investment in intangible assets is rarely financed through bank loans, with firms instead relying on own funds or private equity. However, policy shifts could help channel more bank credit to investments in intangibles. For example, governments could issue guarantees for these loans so as to reduce the potential risks faced by banks. As well, the introduction of a supporting factor for banks’ risk weighted asset (RWA) calculations along the lines of what is used for loans to SMEs and infrastructure investments could also help increase bank lending.

Maudos, J. (2021). «Digitalisation and intangible assets: Unlocking bank lending». SEFO – Spanish Economic and Financial Outlook 10, n. º 2 (March): 67-74.