Enhanced scrutiny of Covid loans at CaixaBank leads to €321m charge

CaixaBank overhauled the metrics used to gauge the credit risk of loans covered by Covid relief measures in Q4, which caused it to identify a whopping €6.7 billion ($8.1 billion) as having declined in creditworthiness and take a €321 million provision against future potential losses.

In the three months to end-December, the Spanish lender’s stock of ‘stage two’ loans under accounting standard IFRS 9 –  those more likely to default than when first originated – increased 48% to €20.8 billion

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: