CaixaBank, Sabadell and Popular have suffered heavy stock market losses thanks to impact on their accounts caused by withdrawing lower limits on mortgages and the Bank of Spain upping its provisioning requirements because of debt refinancing.
Add with new Basil III capital requirements added to the mix, bank share prices are falling lower. Yesterday buyers flocked to purchase shares of these banks at a good price.
Why? Investment firms are convinced that the Bank of Spain and the Ministry of Finance are working on a solution that will allow domestic banks to avoid having to raise more capital. This news clears up doubts about the banking sector and restores some faith in its ability to recover and thrive.
