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State-supported banks to reveal their big debtors

bop2The names of debtors to those banks that have received state support will have to be published in a move that introduces greater transparency.

Despite the Socialist MPs abstaining, the other parties voted for the change that will annoy the governor of the bank of Portugal who has resisted the move, claiming it contravenes ‘banking secrecy’ rules.

The Bank of Portugal also has to report on all public aid given to Portugal’s banks in the last 12 years.

In future, there will be greater transparency from banks that have received aid granted directly by the State or through the Bank Resolution Fund. The Bank of Portugal now has to publish the information on its website and send a list of large debtors to parliament.

The report on debts of banks who have received state support in the last 12 years will include Caixa Geral de Depósitos, BES/Novo Banco, Banif, BPN, BCP Millennium and BPI, which used State capital instruments to achieve its minimum capital ratios at the time of Troika intervention.

After official publication, the Bank of Portugal will have 100 days to deliver this document to parliament.