The Bank of Spain has ordered Barclays to inject more than $690 million into its Spanish arm to meet new capital requirements, Financial Times reports. The bank’s Spanish unit generated corporate loan impairments of $1.44 billion in 2010, three times the 2009 figure. The bank, which is also seeking to close more than 100 of its 600 branches in Spain, may post additional capital by a September deadline. The bank’s Spanish subsidiary currently has a ratio of only 5.2% and must raise that to the new 8% Spanish minimum.
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