Spain gives Barclays order to boost capital by £475m
Barclays has been ordered to pump £475m into its Spanish arm following a health check of the nation's financial system.
The Bank of Spain has run the rule over every lender in the country and found that Barclays (down 4.1p to 301.4p) is one of just two foreign banks without big enough cash cushions, along with Deutsche Bank.
The central bank is battling to quash fears that many lenders operating in Spain do not have enough capital to absorb potential losses on their loan books following a severe property crash.
Hard times: There is growing concern over the health of Spain's banking system
There is growing concern at European level over the health of the Spanish banking system, particularly the mutually-owned lenders, known as 'cajas'.
Moody's yesterday warned that the cost of safeguarding the Spanish banking system could be as much as eight times above Bank of Spain's £13bn estimate.
It cut the Spanish government's debt rating to two notches below its pristine triple-A level. Spain's largest bank, Santander, suffered a set-back to its plans to spin off its UK arm after its chief executive Alfredo Saenz was yesterday jailed for three months, banned from the banking industry and barred from working in financial services after he was found guilty of making false claims.
Santander is standing by Saenz, who will continuing running the financial giant while he appeals the verdict. however, the charges could complicate Santander's plans to list its fast-growing UK division on the London Stock Exchange.
Saenz was due to take a place on the board of its British business ahead of one of the most eagerly anticipated floats in years. Following yesterday's ruling, it is unclear whether the City watchdog will allow him to take his seat.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Volvo's Polestar releases new innovative 4 digital rearview mirror
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mail Online takes a tour of Gatwick's modern EV charging station
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Land Rover unveil newest all-electric Range Rover SUV
- Leapmotor T03 is set to become Britain's cheapest EV from 2025
- Mini Cooper SE: The British icon gets an all-electric makeover
- Blue Whale fund manager on the best of the Magnificent 7
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- We must copy the US to catch up, says HAMISH MCRAE
- Pressure on IMF to change gloomy forecast as Britain...
- Coca-Cola HBC's boss pocketed more than £320,000 in 'cost...
- TONY HETHERINGTON: Nightmare over Neighbourhood Watch...
- Former LV boss Mark Hartigan is up to his old tricks as...
- Nationwide members pocket £350m loyalty bonus
- It makes a £2 billion profit selling garments from just...
- St James's Place facing humiliating exit from FTSE 100
- Sales at Bloomsbury soar thanks to the craze for...
- JEFF PRESTRIDGE: Cash access is still so crucial to the...
- What I've learned about money (and love) in 36 years of...
- CITY WHISPERS: Boss Cook-ing up a big sparkler to woo De...
- Revealed: The seven pensions savings habits that could...
- CQS NATURAL RESOURCES GROWTH AND INCOME: Golden...
- Tesla's chairman dismisses as 'c**p' claims she is too...
- MARKET REPORT: China's Ping An insists it is not bailing...
- ALEX BRUMMER: End this Czech farce at Royal Mail now
- Thames Water is worthless: That's the verdict of its...