European Parliament Library

Spain :, Financial Sector Assessment Program-Technical Note-Impaired Assets and Nonperforming Loans

This Technical Note discusses the findings and recommendations in the Financial Sector Assessment Program for Spain in the areas of impaired assets and nonperforming loans (NPLs). The size of the problem assets varies significantly across banks and is concentrated in those exposed to residential mortgages and real-estate-related firms, whose NPLs represent about 57 percent of all NPLs. A tough stance on the implementation of the European Central Bank (ECB) guidance on NPLs is desirable. Ideally, in the case of Spain, the cleanup should be completed before the expiration of the ECB’s long-term support. Targets to reduce problem assets should be ambitious, and failure to comply should have prudential consequences
Table Of Contents
Cover -- CONTENTS -- Glossary -- EXECUTIVE SUMMARY -- RECOMMENDATIONS -- INTRODUCTION -- PROGRESS IN BANKS' CLEAN-UP OF NPLS AND FORECLOSED ASSETS -- FINANCIAL SITUATION OF FROB, CONTINGENCIES, AND DIVESTMENT PLANS -- PROGRESS BY SAREB IN ASSET RECOVERY AND CHALLENGES GOING FORWARD -- BOXES -- 1. Bank of Spain: Revised Regulation on Credit Risk Analysis and Provision -- 2. Guidance to Banks on Nonperforming Loans -- FIGURES -- 1. Banking Sector's Progress and Recovery -- 2. Bank Lending Rates Have Decreased with Lower NPLs -- 3. SAREB Cashflow Sensitivity Analysis -- TABLES -- 1. Key Recommendations -- 2. Legacy Assets and State Contingencies, end-2016 -- 3. FROB Programs Between 2009-2012 and Sareb's Asset Purchases -- 4. FROB-Latest and Initial B/S & Equity Activities Between 2009-16 (in €billion) -- 5. SAREB-Initial balance sheet -- 6. SAREB-Equity and Subordinated Debt -- 7. SAREB Assets -- APPENDIX -- I. Banks' Progress
Literary Form
non fiction
Physical Description
1 online resource (29 pages)
Specific Material Designation
Form Of Item

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