Spanish Banks: capital position and financial stability

In its Financial Stability Report (November 2019), the Bank of Spain remarks that according to last stress test, the resilience of all Spanish entities against possible disturbances has improved compared to last year, although heterogeneously among entities.

In the adverse scenario, the reduction of the CET1 capital ratio for large entities with international activity is 0.4 pp compared to a fall of 2.7 pp for the rest of the entities.

• In addition, the report highlights the growth of the ordinary capital ratio (CET1) by 36 bp y-o-y, reaching 12.2% in June 2019. The two largest entities in the Spanish banking system would have been the main responsible for improving the CET1 ratio.