Bank of Spain urges lenders to provide more detailed results
The Bank of Spain on Friday called on lenders to publish more details in their results, especially regarding exposure to the nation's collapsed real estate sector, to reassure jittery markets.
Spain's banks should use transparency as their "main instrument to demonstrate to investors the solidity of the financial system," Bank of Spain Deputy Governor Javier Ariztegui said.
He said the results of additional stress tests carried out on Spanish banks would be ready in March, which will provide more information on residential mortgages, detailing collateral and corresponding loan-to-value ratios.
With the exception of five small unlisted lenders, all of Spain banks passed this July's Eurpe-wide stress tests.
But doubts have remained over their exposure to Spain's once-booming property market, which collapsed at the end of 2008 sending the country into its deepest and longest recession in decades.
Spain's stock market has lost ground this week, with banking stocks leading losses due in part to market concerns that the nation's banking system could need more capital injections to sustain itself through the economic downturn.
Since the start of the crisis, Spanish savings banks have received total capital injections of 16.2 billion euros (21.6 billion dollars), most of it from a bank bailout fund financed by the state.
© 2010 AFP