Spain: Financial Sector Assessment Program-Technical Note-Impaired Assets and Nonperforming Loans

November 13, 2017

Preview Citation

Format: Chicago

Spain: Financial Sector Assessment Program-Technical Note-Impaired Assets and Nonperforming Loans, (USA: International Monetary Fund, 2017) accessed November 9, 2024

Summary

This Technical Note discusses the findings and recommendations in the Financial Sector Assessment Program for Spain in the areas of impaired assets and nonperforming loans (NPLs). The size of the problem assets varies significantly across banks and is concentrated in those exposed to residential mortgages and real-estate-related firms, whose NPLs represent about 57 percent of all NPLs. A tough stance on the implementation of the European Central Bank (ECB) guidance on NPLs is desirable. Ideally, in the case of Spain, the cleanup should be completed before the expiration of the ECB’s long-term support. Targets to reduce problem assets should be ambitious, and failure to comply should have prudential consequences.

Subject: Asset and liability management, Banking, Collateral, Debt restructuring, Distressed assets, Financial institutions, Financial sector policy and analysis, Loans, Nonperforming loans

Keywords: Assessment bank, Banco de Valencia, Bank, Bank lending rate, Bank portfolio, Cash flow, Clean-up process, Collateral, CR, Debt restructuring, Distressed assets, Europe, Force bank, Foreclosed assets, FROB, Further bank recapitalization, ISCR, Legacy assets, Loan, Loans, Nonperforming loans, NPL, NPL management strategy, Requiring bank, Sareb

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/343
Stock No:

1ESPEA2017013
ISBN:

9781484327210
ISSN:

1934-7685

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