The main shortcoming of the Bank of Spain’s report on the Spanish banking crisis lies in its lack of a convincing analysis of the reasons why banks proved so vulnerable. It identifies their excessive exposure to residential mortgages, as well as their heavy reliance on external financing. But it fails to plainly set out what went wrong with the world’s financial sector.
Spain banking system
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.