IMF Staff Country Reports

Spain : Financial Sector Assessment Program-Technical Note-Impaired Assets and Nonperforming Loans

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

November 13, 2017

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The Spanish banking sector underwent significant consolidation in the last five years and made material progress in reducing and provisioning its problem assets.2 For consolidated operations, the nonperforming loan (NPL) ratio for Spanish banks was 5.6 percent as of end-2016, close to the European Union (EU) average. For banking business in Spain, the NPL ratio declined from its 2013 peak of 13.8 to about 9.2 percent at end-2016. The provisioning ratio of about 45 percent of total NPLs (95 percent if collaterals are factored in) is within EU average levels. Importantly, total problem assets are still about 70 percent of their peak in 2013, and banks hold sizable performing restructured loans.

Series:

Country Report No. 17/343

Subject:

Banking sector Credit risk Financial assets Financial Sector Assessment Program Loans Spain