The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Europe: Fears mount over Spanish banks

Analysts say forbearance disguises scale of bad debt problem; Santander insists its own stress tests give it confidence

Emilio Botín’s Santander

Emilio Botín’s Santander lost one third of its value in three weeks

News that the Bank of Spain felt compelled to step in at the end of May and take over CajaSur, after the large Spanish savings bank failed to agree a rescue merger with Unicaja, jangled the market’s nerves once more.

The central bank assured creditors and depositors they had no cause for concern: "CajaSur accounts for scarcely 0.6% of the assets of the Spanish banking system, whose soundness will not be in the slightest affected by this situation."

Cue panic.

Spanish risk assets had already suffered astonishing volatility in May.

Santander’s stock price, which stood at €9.50 in mid-April, lost one-third of its value in three weeks, falling to €6.70

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree