Go Finance Reporting in Madrid - rating agencies from the United States (U.S.) Standard & Poor's (S & P) predicted that this year is a difficult period for banks Spain.
This is based on the number of banks in Spain that his debt ratings lowered, including Spain's biggest savings bank, La Caixa, which is being restructured into retail lending. S & P also warned that Spanish banks are facing the challenges of post-reduction in long-term sovereign debt rating of Spain to "AA" and short-term debt to "A-1 +" in the last month.
Rating agency headquartered in New York, United States, it added that other problems in the banking Matador State that is the high cost of funds which can suppress earnings. In fact, at the same time decreasing the volume of loans that burden the bank's operations.
"This industry will face intense competition to attract retail funds while there will be a sequel. Although moderate, the accumulation of nonperforming loans will peak before the end of the year, "said S & P as quoted by AFP.
Last month, the government announced a policy that requires banks to increase the ratio of core capital to eight per cent to boost customer confidence. In addition, Spanish monetary authorities are also forcing financial institutions that are not listed on the stock to convert into traditional bank to help economic growth. On the other hand, the Government of Spain saw strong demand for short-term debt securities during the auction conducted on Tuesday (2/22/2011) ago.
This suggests that financial markets still believe in the ability of government to solve the fiscal gap width. According to the Ministry of Finance of Spain, during an auction of short-term debt Tuesday, the funds collected to reach 2.87 billion euros ($ 3, 89 billion) or about Rp35 trillion for bond maturities of three and six months. (GoFinance)
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