New blow to banks. The credit rating agency Moody’s has downgraded from positive to stable their views on the prospects of the Spanish banking for the next 12 to 18 months. The US firm has made that decision for the problems of banks to improve their profitability, main Achilles heel of the sector across Europe, as shown by the stress test published last Friday.
The agency admitted that the “solid” growth económicoestá helping banks to reduce their arrears and foreclosed assets. But he warned that this expansion of GDP is “more cyclical than structural.”: This year will be 2.9%, but the next will slow to 2%
To this adds that low interest rates are cutting the basic income of Spanish banks, which are among the most dependent on net interest income in Europe (representing more than 50% of its operating profit). In addition, low demand for credit means they can not compensate with more volume of loans and commission charges.
The agency has also noted that the fall in margins has been lessened so far to some extent by the clauses floor mortgages, but this could change if the Court of Justice of the European Union finally decided to force banks to return the overcharged unduly from the principle of credit and not since may 2013, as scheduled the Supreme Court. “No entity has accrued in full cancellation of these clauses retroactively,” he warned.