Judging by the latest valuations which have appeared in the press, the balance of the first five years of Spain’s bad bank, Sareb, is little less than disastrous. But the bank’s performance has been praised by Brussels and by Germany, who have said it has completed its objective of stabilising the Spanish financial system.
‘bad bank’ Sareb
How solid a banking system is is such a cloudy issue that it’s difficult to make a valuation without doubts or ambiguities. For example, in Italy it’s vox populi that the banking sector is very weak, but what about in Spain?
According to Bankinter’s analysts, there will be a moderate increase in housing prices (around 3-5 % between 2016 and 2017), and it will only happen in certain places. So Spain’s property prices will not return to the pre-crisis record highs, but will reach levels similar to that in 2004.