TAILIEUCHUNG - Bank recapitalisation and restructuring process - Results of the Independent Evaluation of the Spanish Banking Sector

Prior to this reform, saving banks could only issue preferred stock without any political rights and subject to limits on the amount of preferred stock that a person or group of people could hold. This of course limited the attractiveness of the instrument and therefore the ability to issue it in efficient, competitive conditions. Now, saving banks will have the possibility to incorporate voting rights to the preferred stock issued in proportion to the share that they represent on total equity. Stocks can be issued up to a maximum of 50% of total equity of the Saving. | MINISTERIO DE ECONOMÍA Y COMPETITIVIDAD BANCO DE ESPANA Eurosistema 28 September 2012 Bank recapitalisation and restructuring process Results of the Independent Evaluation of the Spanish Banking Sector 1 Introduction Today the results of the stress tests conducted on Spanish banks are being presented. This exercise enables an exhaustive and detailed estimation of the Spanish banking sector s capital needs at the level of each bank to be concluded. This process is part of the commitments assumed in July with the Eurogroup for the concession of the financial assistance for the restructuring and recapitalisation of the banking sector. These agreements are reflected in the Memorandum of Understanding MoU . The aim of this exercise has been to evaluate the resilience of the sector in the face of a very adverse and relatively unlikely macroeconomic scenario. It further provides for the dispelling of investors doubts over the presence of losses not appropriately recognised in banks credit portfolios. Accordingly the exercise has pursued the following areas of work 1 An audit of the banks performed by the main firms in the sector in order to review the accounting valuation of the credit assets on bank balance sheets including erroneous classifications of loans and refinancings. Una exhaustiva valoración de activos inmobiliarios basada en el trabajo de seis sociedades de valoración independientes. 2 An exhaustive valuation of real estate assets based on the work of six independent appraisal companies. 3 An in-depth analysis of each bank s business plans and their adaptation to the scenarios in the exercise through conservative assumptions on credit growth and on deposits. 4 A stress test under a highly conservative macroeconomic scenario conducted by the independent consultancy Oliver Wyman which has lead-managed this process. The exercise includes an in-depth and granular analysis of the expected losses in bank portfolios and of the capacity to absorb such losses. When the

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• Fetal Growth Restriction
• Reduced Fetal Movements
• Human Papilloma
• Virus Infection
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• Vaccine Delivery