Spanish banks covered €16 billion of failed smaller entities’ bill
SANTANDER | By A. Laso | Spanish banks association’s president is optimistic about weak entities paying back future help packages after they are restructured into the private sector.
EBA
EBA guidelines for fair mortgage lending come too late
MADRID | By JP Marín Arrese | Banks should enforce the sooner the better these EBA guidelines if only to avoid transforming their credit portfolio into real estate heavily undervalued.
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…
Why markets feel suspicious about the Spanish banking audits
From www.valenciaplaza.com | By Tomas Berggren, equity analysts at Saxo Bank | The result of the independent stress test on Spanish banks calmed the market somewhat. According to the report, the total losses in a worst-case scenario are €250-270 billion with the corresponding capital shortfall being €51-62 billion, i.e. well within what was expected and probably in line with what Madrid wanted to hear. The losses are still hefty, though, and should be…
Santander’s Botín to Spanish banks: it can be done, good results and provisions
By Tania Suárez, in Madrid | Banco Santander’s 4Q11 results are better than expected: it has registered attributable net profit of €5.351 billion, down 35%, after extraordinary provisions of €3.183 billion. According to Sabadell’s analysts, Santander “has achieved better results in the UK than expected, despite having suffered the negative effects of the new UK liquidity regulation.” Santander has noted important expenses (€3.180bn) with its property portfolio, with its Portuguese…
Santander reaches EBA’s 9pc core capital, aims to achieve 10pc
MADRID | Banco Santander has reiterated its goal of having 10% core capital at the close of June, 2012, one point above the level required by the EBA. During the last few months of 2011 Banco Santander has carried out a series of measures regarding capital, allowing it to achieve a core capital ratio of 9% ahead of the European Banking Authority’s (EBA) deadline of June 30th, 2012. The Spanish…
What is David Cameron so scared of? It might be the UK banks
By Carlos Díaz Güell, in Madrid | The deadline is January 20 for EU financial entities to submit to the European regulator their specific plans to comply with the capital demands determined by the European Banking Authority (EBA). For the Spanish entities, this demand amounts to €26bn, an amount that does not take into account certain peculiarities of the Spanish financial system such as the convertible bonds which amount to almost €10bn. The European…
“German banks’ capital needs over €9.5bn vs EBA’s €5bn estimation”
Julia Pastor, in Madrid | The European Banking Authority (EBA) this week revised its figures about recapitalisation volumes needed in the EU institutions. Banco Santander analysts say that “speculations about the German banks are circulation. They may have to increase capital by the amount of €9.5bn instead of the €5bn initially estimated by the EBA.” Also, the Santander note reminded us that European banks are still carrying out liability management…