Spanish banks, the third largest holders of European sovereign debt
La crisis de Francia resucita el fantasma del nexo banco-país. Las fuertes compras de bonos de los cuatro últimos años han disparado el peso en los balances. Leer
The banking sector in Spain has significantly increased its holdings of government bonds over the past four years, with Spanish banks now having the third-highest exposure to sovereign debt in the European Union, according to DBRS. This exposure stands at nearly 350% of their core capital, up from around 260% in 2019. European banks collectively hold €4.54 trillion in sovereign debt, a 44% increase since December 2022.
Despite concerns over the potential impact of France's crisis on the banking sector, DBRS believes that the situation is manageable due to improved profit generation and stronger balance sheets. Major Spanish banks, including Santander, BBVA, Sabadell, and CaixaBank, have substantial holdings of government bonds, with Santander leading at €75.9 billion in Spanish sovereign debt.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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