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Showing posts from May 27, 2012

SPANISH BANKING CRISES 2012 -

To: The Right Hon’ble Banco de España Governor Miguel Fernández Ordóñez From: Athinarayanan Sanjeevraja  Date: May 30, 2012 RE: Spain Banking Crises  Suggestion: Good Morning Mr. Governor. Spanish banking system continue to suffer from the sovereign debt crises. The job is an onerous but it is not impossible. Spain government must act in recital with regulators and central banks to minimize the risk of further shocks of financial systems so that funding markets stablise, equity and credit markets return to health. In Spain, business demand for credit has fallen amid slow growth. The supply of credit has not been severely constrained. The first step should be separate the banks to derisk and deleverage towards creating sound business models for the future. The second step should be banks should not reduce lending in the face of funding constraints. It would be significantly damage Spain’s ability to escape severe recession. Every country was enacting differ