Spain to Reveal Cajas’ Capital Hole in Contagion Fight
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The Bank of Spain will tell lenders today how much capital they need to raise to meet new rules as the nation tries to convince investors that the cost of rescuing its banks won’t sink public finances.
The Bank of Spain will publish each lender’s capital shortfall and the overall amount, which the regulator has already estimated won’t exceed 20 billion euros ($28 billion), or 2 percent of Spanish gross domestic product. The government wants most of that to be raised privately even as central bank Governor Miguel Angel Fernandez Ordonez said Feb. 21 that some lenders will ask the state-rescue fund for help.