- MADRID: Spain’s central bank says the European bank stress tests results show no Spanish lender needs to raise more capital, even though five failed the EU test.
Bank of Spain Governor Miguel Angel Fernandez Ordonez said Friday this is because the criteria used by the European Banking Authority do not take into account that Spanish banks are mandated to set aside for hard times.
He said that if such provisions had in fact been tallied by the EBA those five banks would have passed the test.
The five lenders that failed were four savings banks and traditional commercial bank.
A total of 25 Spanish banks and savings banks were included in the stress test of 90 lenders.