Solvency is still the issue for Spanish banks

Lenient treatment of property assets acquired in debt-for-equity swaps shows regulators are still worried by systemic vulnerabilities.

The chief executive of one of the biggest Spanish banks tries to convince Euromoney that his country’s economy is not in quite the mess often presented outside.

The economy is more innovative and diversified than it is given credit for and is now benefiting from big improvements in infrastructure and human capital that allowed it to hold its share of world export markets even as its labour costs caught up with core Europe over the past nine years.

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