- Business
- Childbirth & Education
- Legal Formalities
- Motoring
- Other
- Pensions & Benefits
- Property & Accommodation
- Taxes
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Join us for Tea on the Terrace
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
- Liva & Laia : 15th November
The Governor of the Bank of Spain yesterday confirmed how the institution has now completed their latest round of reforms of the the Banking Industry, which have cost the country 14 Billion Euros to date.
Fernandez Ordonez called on Europe's policymakers to work together to solve the sovereign-debt crisis that now threatens many european banks.
Friday was the deadline for Spanish banks to reach new capital requirements set by the government earlier in the year, as part of an effort to improve investor confidence following the slump of the property market and the following toll that it took on many lenders. In total, some 13 Spanish banks were able to raise a total of EUR13.39 billion, slightly less than the Bank of Spain's original estimate of EUR15.15 billion, due to successful initial public offerings by some Cajas, thereby lowering their capital requirements.
Most of this capital will be provided by Spain's Fund For Orderly Bank Restructuring (FROB) totalling some 8 Billion Euros.
Yesterday the Bank of Spain announced that they will be taking control of a further 3 Cajas - taking a 93% stake in Novacaixagalicia, 90% in Catalunyacaixa and 100% of Unnim. Earlier this year, the FROB took control of Caja de Ahorros del Mediterraneo, also known as CAM Bank.
The percentage ownership in these banks that the Bank of Spain has awarded themselves reflects the losses that they have made after exposure to bad debt from the real estate and construction industries. However, now that the latest reform program has been completed, the Governor insists that the rest of the country's banks have enough capital to withstand any future EU Stress tests.
On being asked his opinion on whether European banks should increase their levels of capital to cover possible losses from the sovereign-debt crisis, he commented that Spain would go along with whatever the EU decided was for the best.