Spotlight on Liberbank, BMN after Frob takes over three banks

06 Oct 2011

Spanish borrowers Liberbank and Banco Mare Nostrum are in the spotlight this month after being given a 25 day extension to a deadline to find external capital. The extension comes as market participants remain cautious on Spanish banks despite the country’s recapitalisation process coming close to being finalised last Friday.

The two banks failed to meet Friday’s deadline to increase their capital in line with the Spanish national finish. Under laws introduced this year, Spanish banks must hold 10% core capital. The level is reduced to 8% for banks that have 20% of their business held by a ...

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