Spanish Banks Need More Capital, Says Fitch

The Spanish banking system needs to raise more capital to weather a new crisis, based on stress tests conducted by Fitch Ratings.

The Spanish banking system needs to raise more capital to weather a new crisis, based on stress tests conducted by Fitch Ratings. Fitch estimates a collective shortfall of €38 billion ($52.5 billion) in a base-case stress scenario and €96.7 billion ($133.58 billion) in a more extreme scenario. The credit-rating agency linked the credit shortfall largely to Spain’s savings banks, or cajas, which represent 39% of the banking system.

Click here to read the release from Fitch.