banking union


Spanish Banks’ NPLs Ratio: The Trick Of Statistics

The Spanish banks’ non-performing loans (NPLs) ratio fell to 10.35% in November (10.56% in October), with total bad loans standing at 138.894 billion euros. But this simple figure encapsulates the eternal problems of statistics. The fact is that the average NPL figure provided by the Bank of Spain does not reflect the significant differences between the banks.


Europe’s Chance to Get Deposit Insurance Right

Guntram B. Wolff via Caixin | The European Commission recently presented its proposals for European bank deposit insurance. Officials hope to stabilize the banking system and decouple bank financing costs from any solvency issues affecting their host states. This would achieve the original aim of a proposed banking union by breaking the link between states and their banking systems.


Challenges Facing the EU Today

JOHN BRUTON | With a refugee crisis, a banking union and the prospect of a Brexit, the European Union is faced with a host of questions. The situation was described at the EPP Congress as the “most serious crisis for the European Union since its creation.” This is not an exaggeration.

Venture capital

Alternative sources of financing: venture capital

Venture capital market is still relatively undeveloped in Spain, experts from La Caixa research argue. This kind of investment in Spanish firms totalled 280 million euros (0.03% of GDP) in 2014, clearly below the volumes of the US (0.17% of GDP).

A hand shake

Europe’s barren landscape forces banks to make radical changes

BRUSSELS | May 7, 2015 | By Alexandre MatoPlans to spin off Deutsche Bank’s retail business is the latest rumour to emerge from a changing European banking sector eagerly looking for ways to be more profitable under Basel III regulations. Too big to fail institutions are worried about a decline in their margins because of the low interest rates outlook. For these lenders, breaking up their investment and commercial business, as well as going on a shopping spree within the sector, seem to be solutions for growth.


Jean Tirole

Europe at a crossroads

April 6, 2015 | Guest post by Jean TiroleEmbroiled with the Greek crisis, European policymakers will soon have to step back and reflect on the broader question of the future of the Eurozone. Before calling for an exit or, on the contrary, for further integration, it is worth pondering over the consequences of each option.


Financial sector welcomes UK oversight of Banking Union

BRUSSELS | By Alexandre Mato | The financial sector has been expecting a boost to support capital markets from the incoming EC President Jean-Claude Juncker. There has been widespread speculation as to what shape such a boost might take within the monetary union. However Britain´s opposition to Juncker´s appointment means expectations have been somewhat tempered.


EU banks reach debt holdings all-time high

MADRID | The Corner | European banks have increased their holdings of govies in June by +0.1% m/m (+1.4% y/y), with one somewhat higher increase in the periphery (+ 0.6% m/m and – 1.2% y/y), mostly of a +8.6% in Ireland and +1.8% of Portugal. According to the ECB, EU lenders have reached a new all-time high of 1.8trn debt holdings, while peripheral banks are approaching 2013 numbers (€830bn vs €840bn in June 2013).