The independent audit carried out by consultant Oliver Wyman
estimates the Spanish banking sector needs additional capital of 53.745
billion euros to shore up balance sheets because of its exposure to the
ailing real estate sector if the consolidation currently taking place
among lenders is taken into account, the Bank of Spain said Friday.
The central bank says that without taking into account merger and acquisition processes that are under way and deferred taxes, the figure amounts to 59.3 billion euros, very close to the initial estimate in June by Oliver Wyman of 60 billion euros.
The government has been granted a loan of up to 100 billion euros from its European partners to bail out the sector. The administration is hopeful that some of the banks that need more capital will be able to raise funds privately, reducing the final amount required to 40 billion euros. The consultant carried out stress tests on the country’s 14 main lenders that account for 90 percent of the Spanish banking sector’s assets under different adverse scenarios.
“The results confirm that the Spanish banking sector is mostly solvent and viable, even in an extremely adverse and highly unlikely macroeconomic setting,” the Bank of Spain said in a statement.
Read more: http://elpais.com/elpais/2012/09/28/inenglish/1348855175_598579.html
The central bank says that without taking into account merger and acquisition processes that are under way and deferred taxes, the figure amounts to 59.3 billion euros, very close to the initial estimate in June by Oliver Wyman of 60 billion euros.
The government has been granted a loan of up to 100 billion euros from its European partners to bail out the sector. The administration is hopeful that some of the banks that need more capital will be able to raise funds privately, reducing the final amount required to 40 billion euros. The consultant carried out stress tests on the country’s 14 main lenders that account for 90 percent of the Spanish banking sector’s assets under different adverse scenarios.
“The results confirm that the Spanish banking sector is mostly solvent and viable, even in an extremely adverse and highly unlikely macroeconomic setting,” the Bank of Spain said in a statement.
Read more: http://elpais.com/elpais/2012/09/28/inenglish/1348855175_598579.html
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