banking

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Weekend link fest

A curated selection of links we hope can enlighten us all; some come from our corner, some do from other corners of the net. And as always, our comment widgets are anxious to get your suggestions. The emerging markets won't avoid euro's trouble Blackberry is killing itself how to get her backget=”_blank”>Be lazy, it's good for your company Why Barclays should not be turned into a scapegoat 5 reasons China's…


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“Non-bailed out Spanish banks are as sound as German, French entities”

MADRID | Just a few days before the partial rescue of the Spanish banking sector was announced, Amado Franco talked to journalist Carles Francino during an interview broadcast by SER. Franco is president at one of the largest and healthiest cajas or Spanish savings banks. He is 66 years old and has spent 42 working at Ibercaja. He has been auditor, branch manager, executive, CEO and President since 2004. Franco is a…


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Frau Merkel’s not for turning, but neither seems to be Spain

LONDON | Germany finally met its match in Spain. And the outcome of the clash, as for Monday's market reaction, was unsurprisingly ugly, leaving the future of the euro project in deeper waters than ever before. Naysayers are meant to have a hard time running against the tide of general opinion, or so they were portrayed in the now past European political modern tradition. They were the protesters, the champions…


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Thursday’s chart: LTROs vs real economy

how do you get your best friend to break up with your ex LONDON | Now that the European banks have again been placed in the eye of the storm, even though admittedly some more than others, a chart from BNP Paribas analysts shows why. Banks still pose a barrier at the core of most efforts towards recovery. Take the long-term refinancing operations or LTROs from the European Central Bank: they are meant to…


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Deutsche Bank issues its first €15 billion in bonds, mortgage notes in Spain

MADRID |Deutsche Bank changed its financing strategy by registering a fixed income prospectus in Spain for the first time in history, as reported by the Spanish journal Expansión. The German entity will issue mainly bonds and mortgage notes for an amount of €15 billion, according to the initial information document, which has been sent to the Spanish Securities Exchange Commision or CNMV. Sources at the bank said that “this decision proves…


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IMF reports 70pc of Spain’s banking system already cleaned up

By Julia Pastor, in Madrid | The idea of a suffocated Spanish banking sector spreads like fire throughout the markets: Bankia’s nationalisation, Moody’s cut, the French president François Hollande advising to recapitalise the sector… But the International Monetary Fund will publish next week a report that assures 70% of Spain’s financial entities are already restructured. This news should help tame and perhaps even extinguish the flames. Analysts at Madrid’s financial City also…


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Monday’s chart: that bank deposit flight

From Afi analysts in Madrid, an investor note came Monday with the picture of that much talked about capital flight from the euro peripheral banking systems in the form of non-financial private sector bank deposits. The variation this year, although somewhat noticeable, has not accelerated and volumes remain above 2010 levels in Portugal, Spain and Italy. Greece, on the other hand, shows a seemingly non-stoppable drop since 2009. All in…


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UK banks could face £100-billion bill in commercial property debt

LONDON | Debt held against UK commercial property fell last year from £228.1 billion to £212.3 billion, a drop of 6.8%, the largest British property lending survey revealed Friday. Yet the UK Commercial Property Lending Market report by De Montfort University found that while the overall level of debt is on a downward trajectory and progress has been made in dealing with the distressed legacy debt, there is a long way…


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What is the European Central Bank waiting for?

MADRID | Risk premium is attaining no-return levels. But this time any prospect of bailing out either Spain or Italy seems utterly out of reach. The EU rescue fund simply lacks enough muscle. Its depleted coffers are unable to provide any sustainable respite to the on-going crisis. Even if it had the money, it is highly questionable it would thwart the current wild burst of uncertainty now raging on uncontrollably across…


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Tuesday’s chart: real estate asset coverage in Spain’s banks

Performing real estate assets in Spanish banks must now be provisioned at 30 percent of its book value, which will raise the average coverage ratio for all real estate assets to 45 percent. Then, troubled and toxic real estate assets will be transferred to an asset management company (sociedad de gestión de Activos) and the rest of the portfolio will be independently audited. The picture of the situation within the banking system in…