Chancellor Merkel

Bail-in ring-fences German taxpayers

MADRID | Being a policy issue prominently underlined in all main German parties’ manifestos, the full safeguard bank creditors have enjoyed under past bail-out schemes seems doomed in future.


BBVA wants to avoid surprises in Latin America

MADRID | BBVA Chairman Francisco González wants to eliminate all risks in Latin America and avoid the unpleasant situations his Spanish peers Repsol, REE, Iberdrola, Abertis or Aena had to put up with in the continent.

EU banking union

Should non-euro area countries join the SSM?

By Zsolt Darvas, Guntram B. Wolff | Bruegel Think Tank | Irrespective of the euro crisis, a European banking union makes sense, including for non-euro area countries, because of the extent of European Union financial integration. The Single Supervisory Mechanism (SSM) is the first element of the banking union.


Risk immunity leads to banking abuse

MADRID | Any economy, save for a Soviet one, is run under the healthy guiding rule that smart decisions are rewarded and wretched ones get penalised by the market.

micro businesses

Europe should go for micro solutions

LONDON | If more than 99% of all European businesses are, in fact, small businesses that shape the true back-bone of the European economy, European governments are clearly missing the chance to generate at least a few millions of new jobs.

No Picture

City National Bank of Florida, Bankia’s green shoot in the US

FLORIDA | with informations from Brian Bandell | City National Bank of Florida reported improved earnings in the second quarter of the year as it announced plans for four new branches. The Miami-based bank earned $10.3 million in the second quarter, up from $9.4 million in the first quarter. Its net interest income grew to $30.6 million in the second quarter from $30.2 million. Still, figures are 8.8 percent lower than last year in the same…

No Picture

Bankia accelerates real estate asset sales ahead of bailout

MADRID | Habitat Bankia, BFA Group-Bankia’s property company, announced it has sold over 2,400 real estate assets between January and June of this year. The value of these operations amounts to €230 million. These units from foreclosed assets and the pace of divestment reflects an increase of 17% year on year. In a market environment characterised by continued declines in sales and purchases, the decision of downsizing its real estate…


BNP Paribas to compensate Spanish client with €44,500 for insufficient information

By, in Valencia | The tide might not yet be changing but there is a constant, if slow, thread of judicial instances shaming banks in Spain and elsewhere in Europe. A court in Valencia has condemned BNP Paribas Spain to pay €44,504.89 in compensation to a client who was sold preferred shares. Specifically, the bank transferred to the client, from a contract entered into on October 26 in 2006,…


No sovereign bond haircut for Spanish banks? That’s not serious

MADRID | Everyone seems to skip the nagging fact that stress tests undertaken by Oliver Wyman and Roland Berger only focused on credit risk. Thus, the extra capital requirements only reflect shortcomings in the banking book due to potential bad loans. But any serious test has to embody securities risk in general and sovereign bonds in particular. The European Banking Association has performed it every time it has put European…