LONDON | By Barclays analysts | The two most important events for the market are at the end of the week – the ECB meeting and US employment report. Although no policy change is expected from the ECB, the market will be paying close attention to cues for a potential move in December.
MADRID | By Francisco López | In the current context of scarce credit activity and low interest rates, a substantial part of banks’ financial income originates in the fixed income portfolio. The banking sector’s balances of fixed-income come to €540 billion, which represent 17% of the total balance (around half of them being public debt).
FRANKFORT | Der Standard via Presseurop | Major European banks are paying dearly for their alleged participation in the manipulation of interest and exchange rates.
MADRID| By Francisco López |The European Central Bank published on Wednesday some of the criteria to evaluate financial entities’ solvency, as a previous step before it takes on competences as a single banking supervisor. Balances of 128 European banks will be tested from November to October 2014. And new rules are stricter than expected.
MADRID | By Francisco López | If the efficient markets hypothesis is true, it’s almost sure that Spanish banks will pass next year stress tests. The stock market is clearly betting on the strength of the country’s banking sector, as the rise in its market capitalization by 40 billion euro in just four months shows. Also, its price rose an average of 40% in 2013 and most of them are trading above their book value.
MADRID | By Francisco López | In recent times there has not been any other banking sector as closely tested as the Spanish. However, despite the continuing ‘streap-tease’ of different financial institutions, the big international investors do not fully trust in the health of the Spanish banking sector.
MADRID | By Francisco López | The situation of the Spanish banking sector is still a recurrent topic in official EU meetings, especially now that we’re a little more than one month of knowing if an extension of the financial assistance program is required. ECB’s Chairman believes that Spanish banks will meet the stress tests in 2014, which seems to remove the possibility of a new aid injection. “Everything seems to suggest that Spain will approach this exercise well-equipped, but of course it is very difficult to guess what will happen with individual banks,” Draghi pointed out.
MADRID | By Carlos Díaz Güell | The European Union troika paid a visit to Spain and concluded that the country’s banking sector “progresses satisfactorily”. Although the final report will not be unveiled until November, first impressions are promising and represent the gateway of the 2014 stress tests.
MADRID | By Francisco López | Spain’s credibility is at stake. In the coming months the country will need to tackle its two main economic commitments: compliance with the deficit target of 6.5 per cent in 2013 and requesting (or not) an extension of the bank bailout in November.
MADRID | By J.P. Marín Arrese | The summer break has delivered a much needed respite to Spanish banks, yet the forthcoming autumn will bring them a number of hurdles and potential pitfalls. For the author, the most worrying fact is the lack of ambition in performing a much needed restructuring.