Economy seeks a formula for banks to separate their property assets
The Ministry of Economy and the Bank of Spain studying the way that Spanish banks take out the toxic real estate assets from their balance sheets to manage them separately and be placing on the market, but without combining them into a “bad bank”.
This was explained today by Secretary of State for Economy, Fernando Jiménez Latorre, told reporters after closing the XIII Congress of the Spanish Association of Venture Capital (ASCRI), who added that it is an “unbinding” of these assets.
Financial institutions have already made a huge effort to bring the market value of asset prices with and once done, the process continues taking them out of balance and putting them on sale, he added.
However, he clarified that this “has nothing to do with a ‘bad bank’ or public funds,” after yesterday regulation director Bank of Spain, José María Roldán, spoke of the possibility of segregating the assets , as a third phase of financial sector restructuring.
“Roland, in a presentation to investors, spoke of being studied” unbinding “of real estate assets, and that” has nothing to do “with a” bad bank “, but is the result of the reform financial underway, stressed Secretary of State.
That’s what studies the Bank of Spain, the way banks balance sheets take out all the real estate business and manage it in a “well separated” from his banking business and that is what is known as “unbinding” has insisted.
According to industry sources, the unknown is whether the individual entities that make “unbinding” that would be the option that seems to have more possibilities, or through a property company that groups assets industry-wide problem.
Also define what kind of assets could make the balance, as some sources suggest that could be limited to soil, which is the least value is in the eyes of investors and raises doubts about the strength of the financial sector.
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