By Spanish banks are resilient to market tensions, Bank of Spain Governor says
Spanish banks are resilient to market tensions, Bank of Spain Governor says By Reuters
Breaking News
‘;
Economy 1 hour ago (Mar 21, 2023 09:10)
© Reuters.
By Jesús Aguado
MADRID (Reuters) – Spanish banks are resilient in the face of market tensions and have “strong capital and liquidity positions”, Bank of Spain Governor Pablo Hernandez de Cos said in an interview released on Tuesday, as officials sought to underpin confidence in the financial sector.
“Due to the retail-oriented commercial banking business model, which is the majority in our financial system, the Spanish banking sector has shown remarkable results in the last year,” De Cos told newspaper Expansion.
The interview was published following UBS group’s state-backed takeover of Credit Suisse (SIX:CSGN) at the weekend.
Deputy Bank of Spain Governor Margarita Delgado said last week that Spanish banks had only a “residual” exposure to Credit Suisse. A source with knowledge of the matter previously told Reuters that the total exposure in Spain was well below 1 billion euros ($1.1 billion), without elaborating.
The market turmoil started earlier this month after the demise of U.S. lender Silicon Valley Bank and continued with concerns about the liquidity position of First Republic Bank.
On Tuesday, shares in Santander (BME:SAN), BBVA (BME:BBVA) Sabadell were around 4% up at 0835 GMT as they recovered from steep losses last week.
Echoing comments from European Central Bank President Christine Lagarde, De Cos said that the banking sector throughout the euro area was resilient.
“This has been the result of the regulatory reform agreed at international level over the last decade which, in the case of Europe, has been applied to all banks, regardless of their size,” De Cos, which is also member of the ECB’s governing council said.
European banks have continued to reduce their bad loans, increased their profitability and have benefited from the positive effect of higher interest rates, he added.
Spanish banks are resilient to market tensions, Bank of Spain Governor says
Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information
© 2007-2023 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
