Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
3rd February 2012
Spanish plan for bank asset write-downs
Lui de Guindos, Spanish Finance Minister has laid out a plan to require banks to write down more of their doubtful property and development assets over the next two years. The announcement has been expected for many weeks. Total writedowns are estimated at €50bn (£41bn $65bn ¥5.0tr Y413bn). The government has said it will not inject any public money to assist the banks. There is the existing restructuring fund, FROB which may offer some banks assistance. This fund has mainly been used when banks agree to merge.
Two specifics given by the minister were undeveloped land which must be written down by 80% and new homes 35%. The current requirements are 31% and 25% respectively. The minister argues that this plan will encourage banks to dispose of more of this type of asset giving Spanish people the chance to buy more affordable homes.
The ability of some Spanish banks to meet the new requirements is questioned by many analysts. Bankia is nearly always used as the example of the bank that may not be able to survive under the regime - though the bank maintains it can meet the new regime targets. A number of banks made additional writedowns in their 2011 accounts anticipating the new rules - but by no means all of them.