MADRID (Reuters) – Spanish banks have performed more favorably in this year’s stress tests than last year, Bank of Spain governor Pablo Hernandez de Cos said on Monday.
“The results we obtained are, generally speaking, more favorable than last year, since the entities (…) reduced their exposure (to foreclosed assets),” De Cos said.
Spanish lenders are still suffering from the effect of reducing toxic legacy assets left on their balance sheets after the burst of the real estate bubble in 2007, while households are still cutting their own outstanding credit.
De Cos also said he hoped the next elections in Spain would deliver a stable government, which will need to address high public debt amongst other vulnerabilities.
(Reporting By Jesús Aguado; editing by Clara-Laeila Laudette)