Group of European Pensioners from Savings Banks and Financial Institutions


Index of documents > Euromeetings Magazine > Euromeetings Number 15

The Bank of Spain has had enough. After two years trying to convince the Savings Banks in trouble to restructure themselves, has decided to act. Last week the Bank of Spain, which also acts as a caring entity of the banking sector, has acquired CajaSur. The savings bank refused the joining to be saved. Now, it proposes to increase the rules about the allowances; this measure could make grow in such a high level the balance of loss to oblige these institutions to deal with the reality. Often, the Spanish Savings Banks that are not quoted in the Stock Market are controlled by politicians who do not like the idea of losing the control of their moneyboxes. Up to now, these institutions have rejected the joining, in spite of the liquidity offer of 99 000 million euros made by the Frob (Fund for Orderly Bank Restructuring). Some have preferred to avoid the Frob's conditions - a high voucher and the obligation of restructure. But the new accountant rules will leave little choice. The Bank of Spain has proposed to increase the allowances of the property's assets registered in balance for more than 2 years from 20% to 30%. The Savings Banks have made property purchases 2,6 times high compared with those of the Trade Banks, according to the valuation of Iberian Equity, so they will suffer. In addition, Iberian calculates that the Savings Banks must reserve 5,5 thousand million euros, against 800 million euro of the rest of banks. Both trade banks of the country, Santander and BBVA, have forecasted to increase the allowances to the new asked level. Moreover, the Bank of Spain wants to accelerate the recognition of the loss, making sure that all the credits that cannot be demanded would be covered in one year. It is easy to forecast an unexpected acceleration of the social agreements.

Franco Salza - Italy