| Date: October 21, 2010 | Source: AlertNet |
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Loading ... The rapid deterioration of the Spanish economy and the lack of liquidity conditions in the property market have forced banks to make a record number of foreclosures in Spain since 2007, according to a report by Moody "s Investors Service.
These foreclosures rising severity of losses and strangle the liquidity of residential mortgage-backed securities, says a report on litigation processes mortgages in Spain, signed by Vice President Moody 's Alberto Barbachano.
The volume of foreclosures in Spain taken to court increased by 126% in 2008 and 59% in 2009 year on year. Only in the first quarter of 2010 there was record of 27,561 foreclosures, says the firm.
In more benign economic times than today, Spanish borrowers struggling to meet their payment obligations have been able to sell their homes relatively easily to meet their debts, says the firm.
In this regard, Moody 's said that the weakness of the Spanish economy, the problems facing the housing market and high unemployment have forced banks to undertake implementation of many mortgages.
Nevertheless, it requires that extra-judicial proceedings have now become a solution to the lenders who resort in Spain, especially in areas where the courts are saturated and enforcement of property may take longer.
More details of the story here .
| Date: September 12, 2010 | Source: finanzas.com |
Go ahead and rate this post Loading ... The agreement reached between regulators and central bankers of major economies of the world increases to 7 percent of total capital stocks have to be necessarily available each financial institution, triple the rate currently in effect.
The pact, known as Basel III, also increased to 4.5 percent-more than double the 2 percent currently in effect, the Tier 1 ratio used by regulators to assess the restoration of a bank. Total Tier 1 rate also increased from 4 to 6 percent today.
The agreement also establishes a new book called "capital preservation" of 2.5 percent of its total reserves above Tier 1, explains the group, which brings together leaders from 27 countries under the chairmanship of Chief Executive European Central Bank, Jean-Claude Trichet.
Where an excessive credit conditions regulators may also require a "reservation counter" between 0 and 2.5 percent.
These new rules will begin to be introduced in January 2013 and will be in full force in January 2015. The conservation reserve will be implemented between January 2016 and January 2019.
| Date: July 24, 2010 | Source: Sources |
Go ahead and rate this post Loading ... Much has been talk of the strength of the financial sector, and that Spain has far exceeded the stress test, and the truth is that it is true, especially banks, although banks have not had the same fate. Analyzing each of the other currency, of the seven European entities who discontinued stress test, five of them are Spanish savings banks (also must be said that the country is more to banks and submitted to the stress test).
The German bank Hypo Real Estate mortgage (HRE), the Greek Agricultural Bank (ATEbank) and four groups of Spanish savings banks, as well CajaSur are the seven entities who fail the stress tests developed by the Committee of European banking (CEBS) on 91 community banks failing to meet the objective of maintaining at least a Tier 1 capital ratio of 6% in 2011.
Specifically, the nationalized HRE is the only one of the 14 states examined in suspend Germanic since under the most adverse scenario, which includes the impact of sovereign risk, reduce their Tier 1 to 4.7%. For his part, ATEbank is the only one of six states examined in Greek not meet the minimum standards established by having a Tier 1 ratio of 4.36% in the most demanding of the scenarios.
The four groups of Spanish savings banks are suspending the Catalan Caixa Catalunya, Caixa Tarragona and Caixa Manresa, Spain Caja Caja Duero, Civic Bank (Caja Navarra, Caja Burgos and Cajacanarias) and Unimm (Sabadell, Terrassa and Manlleu). To these must be added the CajaSur Cordoba, which has been operated and sold to BBK.
Together, the seven entities that suspend need 3,500 million euros of additional Tier 1 capital, of which 2,043 correspond to the Spanish savings banks.
The European Commission, the European Central Bank (ECB) and the CEBS called these entities "take the necessary steps to strengthen their capital positions through the private sector and using, if necessary, the facilities created by the governments of Member States, in compliance with EU rules on state aid. "
"The test results confirm the overall strength of the EU banking system to negative macroeconomic and financial impacts, and are an important step to restore confidence in the markets," said the three bodies in a joint statement. The banks of other major EU countries, including Britain, France or Italy, they passed the test without difficulty.
| Date: June 15, 2010 | Source: Sources |
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Loading ... International investors have returned to lay their eyes on the Spanish market, which provide for the restructuring of banks and will be sold assets at deep discounts on the price before the crisis. So considering buying assets discount to banks and to restructure.
German funds were the first to buy more defensive assets such as offices of the business lines of Madrid and Barcelona, but now U.S. funds, British and Dutch are bidding for the majority of assets go on sale.
Banks and savings banks are now the largest Spanish property: according to the Bank of Spain has purchased assets of 59,700 million euros to developers with problems, which have accrued in their accounts 13,000 million (21.8% of its value). The Bank of Spain, with its new regulation on real estate assets, will force banks to accelerate their provisions, to reach 30% at two years of the award. The assumption of these losses, and the use of Bank Restructuring Fund (FROB) in the case of savings banks to replenish its capital, on the book value of assets in financial institutions at market prices and facilitates transactions, which had fallen more than 70% in the last two years.
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| Date: February 9, 2010 | Source: Sources |
Go ahead and rate this post Loading ... The General Council of the Judiciary provides that the number of foreclosures to be around the 180,000 this year, compared to almost 60,000 in 2008 and 114,000 last year. If we add allo real estate developments that have remained unsold, the result is an accumulated stock of housing is forcing many banks not only reduce the price of the property, but to launch the so-called bargain mortgages, whose advantageous Free deficiencies and conditions include terms up to 50 years.
This line has opted Bancaja, which offers mortgages with three-year grace period on payment of the mortgage payments of both principal and interest as well as some real estate portal that goes on sale at preferential stock floors in ICU ( Credit Union Real Estate, marketer of Banco Santander and BNP Paribas), Banco Pastor and GMAC (General Motors's financial), among others.
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| Date: May 6, 2009 | Source: Sources |
Go ahead and rate this post Loading ... The U.S. government has informed Bank of America (BofA) that need to raise new capital amounting to 33,900 million (25,470 million) to address potential worsening of economic conditions, according to the newspaper 'The New York Times , citing sources in the entity.
Thus, BofA would be the entity that would need to capture a greater volume of capital among the 19 banks that have undergone stress tests by U.S. regulators.
If the entity is unable to obtain additional capital from private investors by selling assets or stock of the Government should seek help through the program of relief of troubled assets (TARP), which has already received 45,000 million dollars (33,784,000 euros).
Also, the newspaper notes that BofA could cover almost all of this expansion by converting preferred shares held by the government for common shares of the bank, although this measure would make the state one of the main shareholders of BofA.
Thus, the agency executives have held discussions with government officials over the amount of capital needed by the bank, since the figure is higher than expected.
However, the administrative officer of the entity, J. Steele Alphin, said that Bank of America has several options to raise additional capital on their own before opting for the conversion of shares in government hands.
BofA's reluctance contrasted with the decision of Citigroup, which has already agreed to the conversion of preferred shares for common shares of the Government of the bank.
Therefore, Citigroup will need less capital to capture between 5,000 and 10,000 million dollars (3756 and 7.513 million euros), according to sources familiar with the situation, although the 'mattress' recommended capitalization is between 50,000 and 55,000 million dollars (37 558 and 41.314 million euros).
The results of stress tests will be published tomorrow and is expected to about 10 of the 19 banks tested received the recommendation to expand capital.
On yesterday, the president of the U.S. Federal Reserve (Fed), Ben S. Bernanke said that these entities must submit a plan to meet new capital requirements that must be applied within six months.
| Date: January 28, 2009 | Source: Europa Press |
Go ahead and rate this post Loading ... The Madrid Stock Exchange closed today's session with a rise of 4.22%, the biggest increase since December 8, 2008, which placed the Ibex 35 in the whole level of 8701.5, driven by higher banking In particular, BBVA and Santander, today announced growth in its recurring profit.
Investors have regained confidence in the banking, allowing Spanish banks cut part of the punishment they have suffered in recent days also influenced by the news coming across the Atlantic, where the Senate Finance Committee has approved an aid package worth nearly 400,000 million, which raises the amount that should be discussed in the full House to 887,000 million euros.
Almost all values of selective lived a bright day, full of news. In particular, Banco Santander was up 13.39%, followed by BBVA (+7,87%), Mapfre (+7,11%) and Banco Popular (+7,06%). The other banks also closed in positive and was up 3% Banesto, Banco Sabadell and Bankinter 1.96% 1.85%.
Telefonica, which announced a 15% increase in its dividend in 2009, was up 1.82% or Iberia, which estimated that ended 2008 with net profit fell by 90.3%, was up 3.78% after announcing a Master Plan with ambitious goals and the announcement that it will improve its profitability.
The optimism has breathed banking markets on the recovery of the financial system has allowed allowed investors to overlook the fact that the International Monetary Fund (IMF) pronosticase a contraction of 1.7% in 2009 and 0.1% in 2010 for Spain and 0.5% growth this year for the entire global economy.
In addition, the IMF estimated today that the volume of loan assets originated in the U.S. subject to a potential deterioration in the hands of banks and other market participants could rise to 1.65 billion euros by the worsening credit conditions.
