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Bank of Spain imposes capital buffers on Portugal-exposed lenders

Move follows Bank of Portugal’s November decision over possible risks in housing market

Bank of Spain
Jennifer Delaney

The Bank of Spain has set a 4% sectoral systemic risk buffer (sSyRB) on three lenders with significant consolidated exposures in Portugal, the central bank announced on May 17.

The decision will only affect lenders with a materiality threshold of €1 billion ($1.09 billion): Banco Santander, CaixaBank and BankInter. CaixaBank owns Banco BPI, a Portugal-based lender, and Banco Santander has a subsidiary in Portugal.

The Bank of Portugal set a 4% sSyRB rate on certain lenders in November 2023. The

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