MADRID (Reuters) - Spanish banks' bad loans rose to 11.2 percent of their outstanding portfolios in October, reaching a fresh record high, Bank of Spain data showed on Tuesday.

Loans that fell into arrears increased by 7.4 billion euros ($9.7 billion) from September, reaching 189.6 billion euros in October. The rate was up from 10.7 percent in September.

Non-performing loans on the books of the country's crippled banks have risen steadily since a decade-long property boom ended four years ago, with the country now in its second recession since 2009 and one in four Spaniards out of work.

($1 = 0.7598 euros)

(Reporting By Jesús Aguado; Editing by Julien Toyer)