The outlook for Spain's banking industry in 2013 remains negative as the country continues to struggle economically, a new report has stated.
According to Fitch Ratings' latest analysis of the country's financial sector published yesterday (5 December), the close link between its low sovereign debt rating and individual lenders means banks are unlikely to perform strongly next year.
Carmen Munoz, senior director at Fitch's Financial Institutions group, explained: "In the absence of an improving macroeconomic environment there is no scope for a stabilisation of the sector outlook in 2013."
Fitch noted that next year will mainly be marked by the implementation of the Memorandum of Understanding between Spain and the eurozone, as weak banks receiving part of the €100 billion ($130 billion) fund will be forced to downsize.
Meanwhile, healthier organisations will benefit from a "flight to quality" - a process that "highlights how the competitive landscape is evolving", the agency added.
By Claire Archer