Resolution of the Spanish banking crisis: Implications of recent developments

Resolution of the Spanish banking crisis: Implications of recent developments

Fecha: julio 2012

Autores: Santiago Carbó Valverde, Francisco Rodríguez Fernández

Etiquetas: Crisis bancaria

Spanish and International Economic & Financial Otlook, SEFO, V. 1 N.º 2

There has been some recent progress in the resolution of the banking crisis in Spain through four major developments. First, the Eurogroup agreed on setting up contingent aid for the recapitalization of Spanish banks for 100 billion euros. Second, two well-known consulting firms performed the first independent valuation of Spanish banks’ capital needs. Third, the Eurozone members took some very relevant decisions during their June 28th-29th meeting that could potentially alleviate market pressures on Spanish banks by defining a more streamlined approach for channeling the recapitalization of banks in the Eurozone. Some of these changes point to a European banking union in the near future. And finally, the Memorandum of Understanding (MoU,) with the conditions set for European financial aid for Spanish banks, has also been released on July 20th.

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