Bank of Spain Calls on Country's Lenders to Disclose Real-Estate Holdings

The Bank of Spain asked the country's banks to make an "extra mile" to disclose their real property in the middle of the country's concern also need to be rescued after the Irish accepted a bailout.

Lenders have to give more information about the risks associated with property and real estate, with details of the guarantees and reserves set aside to cover, in March 2011, Javier Ariztegui deputy, said in a speech in Barcelona. He also told banks to cut costs in a "swift and decisive" and completes mergers reduce the number of groups of savings banks in nearly two thirds.

"Spain and the Spanish banking system requires creditors to renew our funding that we have," he said, saying that "no place" to delay the ongoing restructuring in the industry. "The best way is to show every day that banks and savings banks are healthy and profitable."

The spread of sovereign debt crisis is spreading from Europe to Spain and Portugal, as Irish officials race to complete a deal for an international aid package before reopening the financial markets next week. All banks in Ireland passed the tests by European regulators of stress in July, while five Spanish savings banks do not exercise.

Stock prices are falling and the financing of the rising costs of Spanish lenders. Banco Santander SA, Spain's biggest bank, fell 3.6 percent to 7.54 euros, at 11:57 am in Madrid, while Banco Espirito Santo SA, Portugal's biggest bank, traded by market value , fell 1.1 percent to 2.97 euros.

Wholesale funding

Ariztegui said the stress tests for Spanish banks, published in July still "adequately describe the current situation of the banking system and its risks." In addition to the information, shall publish in its real estate, banks will have to give a report on the status of their wholesale funding, he said.

Spanish lenders have € 181,000,000,000 ($ 240 billion) of "exposure" care "of construction and real estate, according to the Bank of Spain.

The observations were made in the text of a speech today in Barcelona Ariztegui which was published on the website of the Bank of Spain