Bank of Spain financial stability report finds ratio of bad loans still growing

Madrid city council

The Bank of Spain has released its latest six-monthly financial stability report, finding that problematic bank loans are continuing to increase against a backdrop of a sickly economy.

Credit to households and businesses in Spain, the report said, continues to contract, meaning the ratio of ‘doubtful assets' in Spanish banks is still on the rise - despite the transfer of some of the worst loans to Sareb, the state-owned ‘bad bank'.

The report said that due to various new measures brought in over

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