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Global investors' attention is focused on Greece, and worries have been raised about the solvency of other European nations. In Spain, however, there's good news: As a result of our government's wide-reaching measures, our financial institutions are set to emerge as more efficient and resilient to any future crises. Herein lie lessons for the rest of Europe and for the world.Spanish financial institutions were extremely resilient to the first phase of the crisis, thanks to prudent retail-banking business models that were funded mainly through deposits and long-term debt issuance. They had negligible exposure to U.S. housing assets and good profitability and capital buffers. They also benefited from the Bank of Spain's high-quality supervision.Nevertheless, fast credit growth in the boom years...
Posted in: Spain's Banks Aren't Going Bust
