Spains survival of the fittest (how Spanish banks are coping with the aftermath of the financial crisis)
Article Type: Abstracts From: Strategic Direction, Volume 29, Issue 4
Stewart J .The Banker, December 2012, Vol. 162 No. 1043, Start page: 56, No. of pages: 4
Describes how the largest banks in Spain were the only financial institutions strong enough to absorb the losses sustained by the country’s troubled real estate sector but the aftermath of the financial crisis of 2008-2009 is expected to see the number of Spanish banks shrink to about ten, compared with 51 in 2008. Takes an optimistic view of the future for these remaining banks, arguing that the restructuring of the Spanish financial system has been extremely rigorous and will leave the country with one of the most solid financial systems in the world. Explains that a strategy of international diversification has played an important part in the recovery of some of the major banks, but some banks maintain a light footprint outside the domestic Spanish market and have found themselves more vulnerable to the property sector collapse. Concludes by noting the government response to developments in the financial sector. Article type: Viewpoint ISSN: 0005-5395 Reference: 42AC106
Keywords: Banks, Economic depression, Finance, Financial services, Recession, Spain
