Portuguese Banks Gain on Liquidity Rule Decision: Lisbon Mover
Banco Espirito Santo SA (BES) and Banco Comercial Portugues SA (BCP) led Portuguese banks higher after global central bank governors allowed lenders to use a wider range of assets to meet international liquidity rules.
Espirito Santo, the nation’s biggest publicly traded bank, advanced 1.9 percent to close at 97.5 cents in Lisbon. Banco Comercial climbed 2.6 percent to 7.9 cents.
“Portuguese banks are benefiting from the decision by central bank chiefs yesterday that will help bolster lending and the economy in Portugal,” said Alfredo Mendes, a trader at Banco Best in Lisbon.
Banco BPI SA (BPI), Portugal’s fifth-biggest bank, which along with Banco Comercial received bailout funds from the Portuguese government, rose 2.1 percent to 1.02 euros.
Central bank governors, meeting in Basel, Switzerland, allowed lenders to use an expanded range of assets including some equities and securitized mortgage debt to meet the liquidity coverage ratio, or LCR. Banks will also have an extra four years to fully comply with the measure.
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