International banking supervisors have decided to relax their liquidity requirements on banks and slowly back down these requirements through the 2019 fiscal year. The decisions signal a rebound within the banking sector, seen yesterday in a general surge in European stock markets, which were driven by major financial groups.
For the Spanish banking sector this is big news, because now it can continue the restructuring process that it started months ago under easier conditions. More liquidity for the banks should translate into more lax credit requirements, which will stimulate the Spanish economy and propel growth.
