Bloomberg News

Spain Banks Resilient While Vulnerabilities Remain, IMF Says

June 08, 2012

Most of Spain’s banks are resilient to shocks while vulnerabilities remain, the IMF said today in a report.

Spanish authorities “have taken measures to address some of the most problematic banks,” Ceyla Pazarbasioglu, deputy director of the IMF’s Monetary and Capital Markets Department, said in a statement. “But the extent and persistence of the economic deterioration may imply further bank losses.”

The fund tested Spain’s banks and found that “under the adverse scenario, the largest banks would be sufficiently capitalized to withstand further deterioration, while several banks would need to increase capital buffers by about” 40 billion euros ($50 billion) in total to comply with capital standards under the Basel III accords.

To contact the reporter on this story: Chris Wellisz in Washington at cwellisz@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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