Spain will not require additional provisions for banks

Date: Friday 22 Jun 2012

Spain will not approve a decree-law with new provision requirements for the country's banks, Reuters reports, citing a government source.

On Friday morning, the consultancy groups hired by Spain to evaluate its banking sector reported that Spanish banks will need up to €62bn in additional capital. The source added that capital demands would be made on a bank-by-bank basis and not sector-wide.

"The focus is completely individualized and additional capital buffers will only be required from the banks that need them," the source said.

According to the source, Spain is not considering any bank liquidation that would entail losses for bond holders, Reuters reports.

JM

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