Spanish banks still have work to do according to IMF

The IMF has just released a report on reform in the financial sector, a year after Spain received a bailout from Europe for its banking system.

The report concludes that while much progress has been made, there is still work to do, including the “bad bank” that is loaded with toxic assets pricing those assets realistically. A large bulk of those assets will be real estate, which the banks to date have been loath to price at market rates for the simple reason that their net asset value would be reduced. On the other hand, by selling off properties for true market value would help get the market going again.

The report also urges the banks to lend more to help increase liquidity in the economy, which it sees as still at risk.

Source: El Pais

Tags: Banks, Economy, socialmedia