Why Popular problems still afflict Spain

The speed with which Santander took on Popular has boosted confidence in the recovery of Spain’s economy and banks, but what are the implications of its high provisions for Popular’s NPLs in a banking system still awash in problem loans?

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IN ADDITION        


The confirmation in early June that Spain’s sixth largest bank was failing or likely to fail surprised almost no one. It was the speed with which the resolution of Banco Popular was completed that was the main source of surprise for investors. 

According to rating agency DBRS, net profits among the nine largest Spanish banks were down by 20% in 2016. Strip out the €3.5

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