Three of Spain's largest banks have said they are setting aside an extra EUR 6 bn to cover bad real estate assets on their balance sheets.
Three of Spain's largest banks have said they are setting aside an extra EUR 6 bn to cover bad real estate assets on their balance sheets.
Banco Santander, Banco Bilbao and Caixabank are responding to a demand by the Spanish government that the country's bank system take provisions totalling EUR 50 bn on their real estate.
The move is designed to protect the banks against further tremors from the collapse of the country's housing boom in 2007 and to restart bank lending to consumers.
Bankia, the third largest bank in Spain, has the highest exposure to real estate. The bank has signalled it is ready to merge with another bank to help meet the government requirements.
