Friday, March 11, 2011

All financial institutions are eligible Basque capital

There were no surprises. As expected, the Basque financial institutions meet the capital requirements set by the central government, so they will not have to resort to raising funds for any of the routes covered by the Royal Decree of Recapitalization recently approved by the Executive.
The Bank of Spain announced yesterday the list of banks and banks have to strengthen their capital to achieve the expected ratio. A list that had raised much expectation, although in the case of the Basque Country left well enough alone. That is, Kutxa, BBK Caja Vital and not have to be recapitalized. Nor should it Iparkutxa Caja Laboral, BBVA, Banco Guipuzcoano Bankoa and integrated in Sabadell.
For Kutxa and BBK, the requirement is 10% to not be listed and relying more than 20% to wholesale markets. However, Caja Vital will set a ratio of 8%, precisely because he justified the wholesale market leverage of 18.18%. However, as explained yesterday the entity Alava, the box comfortably exceeded this requirement, since the Bank of Spain assigned a principal of 810 million, representing a ratio of 13.13% over risk-weighted assets.
A Kutxa, the supervising agency recognized a starting capital of 1,976 million and BBK, which will include the purchase of Cajasur of 3.604 million. Neither did the public entities that throws the capital ratio, as the Bank of Spain merely states that meet the required 10%.

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