Bank of Spain requests banks to secure against defaulting lo...| MENAFN.COM

Friday, 02 December 2022 12:33 GMT

Bank of Spain requests banks to secure against defaulting loans due to financial doubts


(MENAFN) The Bank of Spain chief executive on Tuesday requested banks to guard in contradiction of defaulting loans and concentrate on dangers due to financial doubts.

Pablo Hernandez de Cos stated at a meeting arranged by Spanish daily El Economista that “We find ourselves in a highly complex macro-financial situation, characterized by high inflation, tightening of financial conditions, and increased uncertainty, which has already led to a slowdown of economic activity.”

During such unsettled situations, he stated that it is tough to forecast what is going to occur to the nation’s banking area.

In the meantime, greater interest rates might surge profitability, while on the other, financial worries cause a huge danger.

Pablo Hernandez de Cos went further on that “Although the starting position of the banking sector is positive, being extremely prudent is necessary, as is closely monitoring risks, which could rapidly evolve and bring about new stress scenarios.”

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