Spanish NPL ratio

Spain’s ‘Real’ Non-Performing Loans (NPL) Approach 25% of GDP

While non-performing loans (NPL) among banks in Spain is close to an all-time high at 11 percent, the real number is closer to 17 percent, a study from Exane BNP Paribas SA (EPA:BNP) (OTCMKTS:BNPQY) finds. The use of restructured loans and foreclosures skew NPL reporting to make the situation appear less dire than it really is.

Also see Spanish Banks Lose Half of All Profits Since 1992 In Less Than Two Years

Spain's non-performing loans (NPL) ratio

Spain’s NPL ratio has grown 22 out of the last 24 months, the only two exceptions being December 2012 and February 2013, when four banks transferred assets to Sareb (Sociedad de Gestión de Activos procedentes de la Reestructuración Bancaria), the so-called ‘bad bank’. Since Sareb is not considered to be an actual bank under Spanish law, even though it functions like a bank, this allows the Spanish financial sector to effectively write down the amount of toxic assets burdening the economy.

SORRY!

This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Welcome in the new year by signing up up for ValueWalkPremium today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 1/31/2019 or after next 30 23 subscribers take advantage whichever comes first – please do not share this discount with others

 

0