Spanish banks 'need more capital'

11 April 2012

Spanish banks are likely to need access to more capital should the country's economy deteriorate in the near future, a leading official has said.

Miguel Angel Fernandez Ordonez, governor of the Bank of Spain, believes financiers will require help as the nation continues to battle against the impact of the monetary crisis.

Lenders across Spain have struggled in recent years due to the economic slump and it is feared that some companies may not be strong enough to survive should the country's recession not end soon.

Reforms have been made in the recent past as the government tries to assist ailing banks, but Mr Ordonez - a former executive director at the International Monetary Fund - told a conference in Madrid yesterday (11 April) that such action may not be enough.

"If the economy worsens more than expected, it will be necessary to continue increasing and improving capital as necessary in order to have solid entities," he noted.

By Gary Cooper

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