By Jesús Aguado
MADRID, March 28 (Reuters) - Uncertainty triggered by
the global banking sector turmoil may generate a persistent
increase in funding costs for Spanish lenders and lead to higher
provisions, Bank of Spain Governor and ECB policymaker Pablo
Hernandez de Cos said on Tuesday.
Presenting the central bank's supervisory report, he also
said that the impact from high inflation on the disposable
income of households and firms "may also adversely affect their
ability to pay".
"This, in turn, may force (Spanish) banks to raise the
required loan loss provisions, although the macroeconomic
deterioration has not been reflected so far in terms of credit
quality," de Cos said, adding that bad loan ratios declined
gently throughout 2022, despite the end of loan moratoriums.
(Reporting by Jesús Aguado and Emma Pinedo, editing by Andrei
Khalip)
Messaging: Reuters Messaging:
jesus.aguado.reuters.com@reuters.net))
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