Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Spanish savings bank first to detail property debt

Source: Reuters - Thu 13th Jan 2011

Spain's Banco Mare Nostrum said on Thursday 23 percent of its loan book was related to real estate, the first of the unlisted savings banks to report their exposures to property loans under new Bank of Spain demands.

The Bank of Spain has ordered the nation's banks, including the unlisted 'cajas' that account for around half the financial system, to publish details of their exposure to construction and mortgage loans.

Concerns over the cajas' exposure to the collapsed property market have fuelled fears over the stability of the country's banking system.

BMN's total loan book is 52.6 billion euros, with 11.6 billion euros of that related to the property sector, the bank said. Of that 2.8 billion euros are bad loans and 1.8 billion are potentially bad.

The government has also driven the cajas to cut their number to 17 from 45 in a wave of mergers. All will release details of property loans over the next few weeks.

BMN, formed from the merger of regional banks Caja Granada, Caixa Penedes, Caja Murcia and Sa Nostra, said it would make 4.2 billion euros of losses under a worst-case economic scenario.

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs