Spanish banks capital requirements


Spanish Banks’ Profitability Is Starting To Pick Up

It looks as if 2016 will be the first year to bring some normality to Spain’s banking sector in terms of capital requirements since the start of the deep financial crisis. The most important consquence of this crisis has been the sharp drop in the industry’s profitability – a 6.8% decline in return on equity (ROE) to 5.3% in six years. But AFI analysts estimate that the Spanish banking sector’s profitability will be around 6-7% over the next few years.