June 14, 2012 at 09:36 AM EDT
Spanish Banks’ Net ECB Loans Jump to Record 288 Billion Euros
And no business disruption: Spanish Banks’ Net ECB Loans Jump to Record 288 Billion Euros By Charles Penty and Emma Ross-Thomas June 14 (Bloomberg) — Spanish lenders’ net borrowings from the ECB jumped to a record 287.8 billion euros ($361.4 billion) in May, highlighting the thirst of the financial system for funding before the country’s [...]

And no business disruption:

Spanish Banks’ Net ECB Loans Jump to Record 288 Billion Euros

By Charles Penty and Emma Ross-Thomas

June 14 (Bloomberg) — Spanish lenders’ net borrowings from the ECB jumped to a record 287.8 billion euros ($361.4 billion) in May, highlighting the thirst of the financial system for funding before the country’s banking bailout.

Net average ECB borrowings climbed from 263.5 billion euros in April, the Bank of Spain said on its website today. Gross borrowing was 324.6 billion euros in May, up from 316.9 billion euros in April.

Spain on June 9 became the fourth euro member to seek a bailout since the debt crisis began almost three years ago, asking for as much as 100 billion euros to rescue lenders pummeled by a real estate slump now in its fifth year.

The increase in ECB borrowings “conveys the severity of the predicament some banks found themselves in ahead of last week’s bailout,” Martin van Vliet, an economist at ING Bank in Amsterdam, said in an e-mailed comment. “Now that concerns about the solvency of Spain’s banks will be addressed, financing difficulties should gradually start to ease. But we should expect the Spanish banking system to remain heavily dependent on central bank funding for quite some time.”

The net amount subtracts the average amount parked by Spanish banks at the overnight deposit facility, van Vliet said.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here