Legal tip 471. Results of Spanish Banks´ solvency status to be published today
10 March 2011 @ 08:42
Spanish financial system under final tests today.
Bank of Spain will publish today the list of financial entities which need capitalization and how much they need to meet the minimum ratios. Those below the ratio will present within 15 days a plan for recapitalization. If they need the aid of the Restructuration Fund (FROB) they will have two weeks more for the presentation of the plan. If the plan is not meet by September 30th, they will receive public funds.
The required ratio is equivalent to the core capital which is the capital maximum quality international reference. It relates capital and reserves with risk assets.
CatalunyaCaixa y Unnim, NovaCaixagalicia and Caja EspañaDuero are those entities with lower capital ratios and less attractive to private investors during the following months.
The main goal of this tests and plans is to reinforce trust on Saving Banks, Banks and Spanish Economy. If they are solved, the foreign financing flows will return to Spain.
"Golf Club La Alcaidesa", by Luis López-Cortijo
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