The VLTROs conducted by the Eurosystem in 2011 and 2012 had a positive effect on bank credit supply to non-financial corporations in Spain. The impact was greater for illiquid banks and SMEs, with no effect on loans to large firms. Strong firm-bank relationships were less affected by the liquidity shock. The VLTROs did not change loan collateralization or the likelihood of lending to new borrowers, but decreased the probability of renewing old loans.