€100 billion of caja loans could go bad: Bank of Spain

Bank of Spain releases details of savings banks’ exposures to real estate sector, levels of provisions; says reforms have addressed slew of underlying problems


The Bank of Spain on Monday published a detailed account of the health of its savings bank sector which showed that at the end of last year, the sector had taken a "very prudent" approach to remedying its underlying problems.

The central bank said the cajas, which are savings banks, had total exposure to the real estate and construction sectors worth €217 billion ($296.8 billion), of which €173 billion stemmed from lending, with the remaining €44 billion accounting for foreclosed assets. "Total

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

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