Bank of Spain sees turmoil upping funding costs, provisions for lenders

Kitco Media
By Reuters
Published:
Updated:
Reuters
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))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.